@article{Escalante:15461,
      recid = {15461},
      author = {Escalante, Cesar L. and Barry, Peter J.},
      title = {RISK BALANCING IN AN INTEGRATED FARM RISK MANAGEMENT PLAN},
      journal = {Journal of Agricultural and Applied Economics},
      address = {2001-12},
      number = {1379-2016-113055},
      pages = {17},
      year = {2001},
      abstract = {Using optimization techniques in a simulation framework,  this study demonstrates the synergy between risk balancing  and alternative strategies in effectively reducing risk  under changing farm conditions.  Highly risk-averse farmers  tend to prefer integrated risk-management plans, based on  the diversification principle, that yield offsetting  combinations of the risk-reducing benefits of most  strategies and the profit-generating capacities of the  others.  The greater appeal of a more diversified plan  usually downplays the risk balancing strategy as the farm  utilizes credit reserves to implement other production and  marketing plans considered essential to overall risk  reduction.  The farm, however, still realizes overall,  although more regulated, reduction in its financial risk  position.},
      url = {http://ageconsearch.umn.edu/record/15461},
      doi = {https://doi.org/10.22004/ag.econ.15461},
}