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Reducing Yield Variation in Peach Orchards by Geographic Scattering

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  • T. Jeffrey Price
  • Michael E. Wetzstein
  • Mark W. Rieger

Abstract

Assuming a declining correlation in yields as distance between pairs of orchards increases, yield variability in peach production may be reduced by increasing distances among orchards. As a measure of yield variability that avoids possible bias resulting from orchard-specific effects, a stochastic production function is estimated. Results support the assumption that a declining correlation between yields exists as distance increases. For every mile further apart, the correlation in yield declines 2.28%. Copyright 1997, Oxford University Press.

Suggested Citation

  • T. Jeffrey Price & Michael E. Wetzstein & Mark W. Rieger, 1997. "Reducing Yield Variation in Peach Orchards by Geographic Scattering," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1119-1126.
    • Handle: RePEc:oup:ajagec:v:79:y:1997:i:4:p:1119-1126
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    File URL: http://hdl.handle.net/10.2307/1244269
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    Cited by:

    1. Larsen, Ryan A. & Mjelde, James W. & Klinefelter, Danny A. & Wolfley, Jared L., 2009. "Geographical Diversification in Agriculture: An Applied Case to Western U.S. Wheat Growers," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46819, Southern Agricultural Economics Association.
    2. Price, T. Jeffrey & Wetzstein, Michael E., 1999. "Irreversible Investment Decisions In Perennial Crops With Yield And Price Uncertainty," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-13, July.
    3. Tadesse, Dawit & Blank, Steven C., 2003. "Cultivar Diversity: A Neglected Risk Management Strategy," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(2), pages 1-16, August.
    4. Miller, Stephen E. & Kahl, Kandice H. & Rathwell, P. James, 2000. "Evaluation Of Crop Insurance Premium Rates For Georgia And South Carolina Peaches," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 18(3), pages 1-15.
    5. Larsen, Ryan A. & Vedenov, Dmitry V. & Leatham, David J., 2009. "Enterprise-level risk assessment of geographically diversified commercial farms: a copula approach," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46763, Southern Agricultural Economics Association.
    6. Amitrajeet Batabyal & Peter Nijkamp, 2008. "Optimal resource management in the presence of a deleterious alien species: a stochastic model for an orchard," Letters in Spatial and Resource Sciences, Springer, vol. 1(2), pages 107-115, December.

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