Optimal Land Allocation and Production Timing for Fresh Vegetable Growers under Price and Production Uncertainty

Production timing is an essential element in fresh vegetable growers’ efforts to maximize profitability and reduce income risks. The present study uses biophysical simulation modeling coupled with a dual crop (tomatoes, sweet corn) whole-farm economic formulation to analyze the effects of growers’ risk aversion levels and price consideration (seasonal or annual price consideration) in expected net returns and production practices. The findings indicate that consideration of seasonal price trends results in higher expected net returns and greater opportunities to mitigate risk. Furthermore, risk aversion levels substantially influence production timing when seasonal price trends are considered.


Editor(s):
Marchant, Mary A.
Bosch, Darrell J.
Issue Date:
Nov 01 2013
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/157391
Published in:
Journal of Agricultural and Applied Economics, Volume 45, Number 4
Page range:
683-699
Total Pages:
16
JEL Codes:
C61; C63; D81
Series Statement:
45
4




 Record created 2017-04-01, last modified 2018-01-07

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