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Stochastic Dynamic Optimization And Rangeland Investment Decisions

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  • Lambert, David K.
  • Harris, Thomas R.

Abstract

One of the most uncertain resources for a western beef cattle ranch is the availability of reliable spring forage. The impact on ranch equity position and income variability of investments in crested wheatgrass seedings designed to stabilize spring forage supplies is examined. Expected ending net worth under stochastic forage production and cattle prices is maximized subject to secondary safety-first objectives. Seedings increase expected ending net worth and increase annual net ranch incomes after plant establishment.

Suggested Citation

  • Lambert, David K. & Harris, Thomas R., 1990. "Stochastic Dynamic Optimization And Rangeland Investment Decisions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32071
    DOI: 10.22004/ag.econ.32071
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    File URL: https://ageconsearch.umn.edu/record/32071/files/15020186.pdf
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    References listed on IDEAS

    as
    1. Joseph Atwood, 1985. "Demonstration of the Use of Lower Partial Moments to Improve Safety-First Probability Limits," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 787-793.
    2. Fishburn, Peter C, 1977. "Mean-Risk Analysis with Risk Associated with Below-Target Returns," American Economic Review, American Economic Association, vol. 67(2), pages 116-126, March.
    3. Bernardo, Daniel J. & Conner, J. Richard, 1989. "Methodological Issues in Range Economics: Modeling the Range-Livestock Production System," WAEA/ WFEA Conference Archive (1929-1995) 244846, Western Agricultural Economics Association.
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    Cited by:

    1. Deaton, Brady J. & San, Nu Nu, 1999. "Feasibility Of Integrating Sheep And Crops With Smallholder Rubber Production Systems In Indonesia," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 17(2), pages 1-18.
    2. Novak, Frank & Eales, James & Munro, Earl, 1993. "Profitability and Risk of Retained Ownership of Beef Calves," Project Report Series 232371, University of Alberta, Department of Resource Economics and Environmental Sociology.

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    Keywords

    Livestock Production/Industries;

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