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Farm Operating Risk And Cash Rent Determination

Author

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  • Turvey, Calum G.
  • Baker, Timothy G.
  • Weersink, Alfons

Abstract

This article examines farm operating risks and cash-rent determination through the use of the efficient set mathematics. The efficient set mathematics proves to be a pragmatic approach to characterizing operating risks, and the relationships between operating risks and cash-rent determination. Various separation theorems are used to postulate the relationship between operating risk and cash rents. Preliminary evidence appears to support the theoretical conclusion that opperating risk and cash-rent determination are related.

Suggested Citation

  • Turvey, Calum G. & Baker, Timothy G. & Weersink, Alfons, 1992. "Farm Operating Risk And Cash Rent Determination," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-7, July.
    • Handle: RePEc:ags:jlaare:30733
    DOI: 10.22004/ag.econ.30733
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    References listed on IDEAS

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    1. S. R. Johnson, 1967. "A Re-examination of the Farm Diversification Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(3), pages 610-621.
    2. Paul V. Preckel & Allen M. Featherstone & Timothy G. Baker, 1987. "Interpreting Dual Variables for Optimization with Nonmonetary Objectives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 849-851.
    3. Sharpe, William F., 1967. "Portfolio Analysis," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 2(2), pages 76-84, June.
    4. C. G. Turvey & H. C. Driver, 1986. "Econanic Analysis and Properties of the Risk Aversion Coefficient in Constrained Mathematical Optimization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 34(1), pages 125-137, March.
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    Citations

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    Cited by:

    1. Blank, Steven C., 1993. "The Robustness Of Single Index Models In Crop Markets: A Multiple Index Model Test: Reply," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-6, July.
    2. Brent A. Gloy & Timothy G. Baker, 2002. "The Importance of Financial Leverage and Risk Aversion in Risk-Management Strategy Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 1130-1143.
    3. Blank, Steven C., 2001. "Globalization, Cropping Choices, and Profitability in American Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(2), pages 315-326, August.
    4. Steven C. Blank, 1995. "The new risk environment in California agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 11(2), pages 155-168.
    5. Blank, Steven C., 2005. "Hedging with off-farm income: implications for production and investment decisions across farm sizes," 2005 Annual Meeting, July 6-8, 2005, San Francisco, California 291741, Western Agricultural Economics Association.
    6. Turvey, Calum G., 2002. "Can Hysteresis And Real Options Explain The Farmland Valuation Puzzle?," Working Papers 34131, University of Guelph, Department of Food, Agricultural and Resource Economics.

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