@article{Coffey:15031, recid = {15031}, author = {Coffey, Brian K.}, title = {AN ANALYSIS OF THE EFFECTS OF FEED INGREDIENT PRICE RISK ON THE SELECTION OF MINIMUM COST BACKGROUNDING FEED RATIONS}, journal = {Journal of Agricultural and Applied Economics}, address = {2001-08}, number = {1379-2016-113490}, pages = {13}, year = {2001}, abstract = {The traditional minimum cost feed ration linear programming model is expanded to permit risk management responses to price variability associated with feeding a particular ration across time. The cost minimizing objective function also considers feed cost in a mean-variance (E-V) framework. The model is specified using NRC nutrient requirements and an historic Feedstuffs price series. A decision-maker can choose his/her optimal ration by making tradeoffs between price risk and net income. The results should provide a basis for decision tools that allow livestock producers to manage the net income risk involved in the selection of a feed ration.}, url = {http://ageconsearch.umn.edu/record/15031}, doi = {https://doi.org/10.22004/ag.econ.15031}, }