IDEAS home Printed from https://ideas.repec.org/a/ags/jasfmr/161497.html
   My bibliography  Save this article

Simulating Returns to Alternative Crop Mixes in Northeastern Louisiana

Author

Listed:
  • Deliberto, Michael
  • Salassi, Michael
  • Guidry, Kurt

Abstract

Rising production costs and volatility in commodity prices have forced agricultural producers to diversify their farm acreage as a means of increasing farm profitability. A financial farm-level simulation model is constructed to examine net returns over total variable production costs per rotational acre for a representative corn, cotton, and soybean farming operation located in the Mississippi River delta region of Louisiana. Results indicate that a predominant corn followed by a corn-soybean crop mix generates the highest net returns above variable costs to the producer when harvest month futures prices are considered with respect to simulated input parameters and expected yields.

Suggested Citation

  • Deliberto, Michael & Salassi, Michael & Guidry, Kurt, 2013. "Simulating Returns to Alternative Crop Mixes in Northeastern Louisiana," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2013, pages 1-18, June.
    • Handle: RePEc:ags:jasfmr:161497
    DOI: 10.22004/ag.econ.161497
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/161497/files/390%20Deliberto.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.161497?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richardson, James W. & Klose, Steven L. & Gray, Allan W., 2000. "An Applied Procedure For Estimating And Simulating Multivariate Empirical (Mve) Probability Distributions In Farm-Level Risk Assessment And Policy Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(2), pages 1-17, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Man-Keun Kim & Ertqian Zhu & Thomas R. Harris & Jonathan E. Alevy, 2012. "An LP-SAM Approach for Examining Regional Economic Impacts: An Application to Wildfire Disasters in Southeast Oregon," The Review of Regional Studies, Southern Regional Science Association, vol. 42(3), pages 207-221, Winter.
    2. Asci, Serhat & Borisova, Tatiana & VanSickle, John J., 2015. "Role of economics in developing fertilizer best management practices," Agricultural Water Management, Elsevier, vol. 152(C), pages 251-261.
    3. Featherstone, Allen M. & Kastens, Terry L., 2000. "Non-Parametric and Semi-Parametric Techniques for Modeling and Simulating Correlated, Non-Normal Price and Yield Distributions: Applications to Risk Analysis in Kansas Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(2), pages 267-281, August.
    4. Loughrey, Jason & Thorne, Fiona & Hennessy, Thia, 2015. "The Direct Impact of Risk Management Tools on Farm Income: The Case of Irelands Spring Barley Producers," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204228, Agricultural Economics Society.
    5. Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2016. "The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-29.
    6. Falconer, Lawrence L. & Evers, Gerald W. & Ribera, Luis A., 2011. "Economic Analysis of High Fertilizer Input, Over-seeded Clover and Native Pasture Production Systems in the Texas Coastal Bend," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98740, Southern Agricultural Economics Association.
    7. Monge, Juan J. & Ribera, Luis A. & Jifon, John L. & Silva, Jorge A., 2013. "Economics of Lignocellulosic Ethanol Production From Energy Cane," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142773, Southern Agricultural Economics Association.
    8. Watkins, K. Bradley & Mane, Ranjitsinh U. & McClung, Anna, 2018. "Economic Risk Analysis of Rice Cultivars under Organic and Conventional Management," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266587, Southern Agricultural Economics Association.
    9. Dlamini, Thula S. & Fraser, Gavin C.G., 2010. "Economics of Meat Production from the Springbuck in the Eastern Cape Karoo," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96181, African Association of Agricultural Economists (AAAE).
    10. Acmoody, Jacob & Balagtas, Joseph Valdes & Gray, Allan W., 2006. "Farm Level Incidence of the U.S. Farm Policy Proposal to the WTO," 2006 Annual meeting, July 23-26, Long Beach, CA 21260, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Edward Knapp & Jason Loughrey, 2017. "The single farm payment and income risk in Irish farms 2005–2013," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-15, December.
    12. Lyman, Nathaniel & Nalley, Lawton Lanier, 2013. "Stochastic Valuation of Hybrid Rice Technology in Arkansas," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142505, Southern Agricultural Economics Association.
    13. Lien, Gudbrand & Hardaker, J. Brian & Asseldonk, Marcel A.P.M. van & Richardson, James W., 2009. "Risk programming and sparse data: how to get more reliable results," Agricultural Systems, Elsevier, vol. 101(1-2), pages 42-48, June.
    14. Frikkie Maré & Bennie Grové & Johan Willemse, 2017. "Evaluating the long-term effectiveness of crop insurance products to provide cost effective and constant cover for maize producers under stochastic yields and prices," Agrekon, Taylor & Francis Journals, vol. 56(3), pages 233-247, July.
    15. Acs, Szvetlana & Berentsen, Paul B.M. & Huirne, Ruud & van Asseldonk, Marcel, 2009. "Effect of yield and price risk on conversion from conventional to organic farming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 1-19.
    16. Balana, Bedru & Bizimana, Jean-Claude & Richardson, James W. & Lefore, Nicole & Adimassu, Zenebe & Herbst, Brian K., 2018. "Profitability and Economic Feasibility Analysis of Small Scale Irrigation Technologies in northern Ghana," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266558, Southern Agricultural Economics Association.
    17. Hristovska, Tatjana & Watkins, K. Bradley & Anders, Merle M., 2012. "An Economic Risk Analysis of No-till Management for the Rice-Soybean Rotation System used in Arkansas," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119676, Southern Agricultural Economics Association.
    18. Feng, Siyi & Patton, Myles & Binfield, Julian C.R. & Davis, John, 2014. "Assessing the costs of risk management tools: A crop insurance scenario based on a stochastic partial equilibrium model approach," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 170538, Agricultural Economics Society.
    19. Barham, E. Hart Bise & Robinson, John R.C. & Richardson, James W. & Rister, M. Edward, 2011. "Mitigating Cotton Revenue Risk Through Irrigation, Insurance, and Hedging," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 43(4), pages 529-540, November.
    20. Fumasi, Roland J. & Richardson, James W. & Outlaw, Joe L., 2008. "The Economics Of Growing And Delivering Cellulosic Feedstocks In The Beaumont, Texas Area," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6788, Southern Agricultural Economics Association.

    More about this item

    Keywords

    Production Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jasfmr:161497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/asfmrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.