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Farm Planning, Risk Aversion, And The Returns To On-Farm Storage Facilities

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  • Shurley, W. Donald
  • Patrick, George F.

Abstract

Risk is incorporated into an annual farm-planning model using the MOTAD framework. The availability of on-farm storage is an important and often forgotten resource constraint in the sensitivity of farm plans. Because farm plans are affected by risk aversion, so is the importance of storage facilities. Study results were highly sensitive to storage capacity and generally show that returns to storage are highest at low farmer risk aversion.

Suggested Citation

  • Shurley, W. Donald & Patrick, George F., 1981. "Farm Planning, Risk Aversion, And The Returns To On-Farm Storage Facilities," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279457, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea81:279457
    DOI: 10.22004/ag.econ.279457
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    References listed on IDEAS

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    1. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 53-62.
    2. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 664-665.
    3. Lars Brink & Bruce McCarl, 1978. "The Tradeoff between Expected Return and Risk Among Cornbelt Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 259-263.
    4. Persaud, Tillak & Mapp, Harry P., 1980. "Analysis Of Alternative Production And Marketing Strategies In Southwestern Oklahoma: A Motad Approach," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271566, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
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    Keywords

    Risk and Uncertainty;

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