Expected Utility Analysis of Stocker Cattle Ownership Versus Contract Grazing in the Southeast

Stocker cattle ownership is compared to contract grazing using stochastic simulation. Returns are evaluated for both cattle owners and caretakers in contract grazing agreements. For caretakers, contract grazing is significantly less risky than cattle ownership. Slightly to moderately risk-averse caretakers could be expected to prefer some type of contract grazing to direct ownership of cattle. For cattle owners, contracting reduces risk only slightly while significantly reducing expected returns.


Issue Date:
2004-12
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/43471
PURL Identifier:
http://purl.umn.edu/43471
Published in:
Journal of Agricultural and Applied Economics, Volume 36, Number 3
Page range:
719-730
Total Pages:
12
JEL Codes:
Q0; L1




 Record created 2017-04-01, last modified 2018-01-22

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