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Assisting Whole-Farm Decision-Making through Stochastic Budgeting

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  • Lien, Gudbrand D.

Abstract

Stochastic budgeting is used to simulate the business and financial risk and the performance over a six-year planning horizon on a Norwegian dairy farm. A major difficulty with stochastic whole-farm budgeting lies in identifying and measuring dependency relationships between stochastic variables. Some methods to account for these stochastic dependencies are illustrated. The financial feasibility of different investment and management strategies is evaluated. In contrast with earlier studies with stochastic farm budgeting, the option aspect is included in the analysis.

Suggested Citation

  • Lien, Gudbrand D., 2002. "Assisting Whole-Farm Decision-Making through Stochastic Budgeting," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 6950, International Farm Management Association.
    • Handle: RePEc:ags:ifma02:6950
    DOI: 10.22004/ag.econ.6950
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    References listed on IDEAS

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