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Enhancing The Competitiveness And Risk-Efficiency Of Farm Assets Through Holding Farm/Financial Asset And Off-Farm Income Portfolios

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  • Lagerkvist, Carl Johan
  • Gregory, Mark
  • Olson, Kent D.

Abstract

This study employs a dynamic continuous time model to calculate farm and total farm/financial/off-farm investment portfolios. Data are from the Southwestern Minnesota Farm Business Management Association records. Results are derived for classes of farms sorted by farm profitability. It is shown that this categorization of farm assets has a significant impact on the portfolio results as well as on the degree of competitiveness of the farm asset in relation to financial assets. The impact of off-farm income to portfolio selection is modest but found to differ across farm types.

Suggested Citation

  • Lagerkvist, Carl Johan & Gregory, Mark & Olson, Kent D., 2003. "Enhancing The Competitiveness And Risk-Efficiency Of Farm Assets Through Holding Farm/Financial Asset And Off-Farm Income Portfolios," 2003 Annual meeting, July 27-30, Montreal, Canada 22125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22125
    DOI: 10.22004/ag.econ.22125
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    References listed on IDEAS

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