@article{Röhrig:209210,
      recid = {209210},
      author = {Röhrig, Maren and Hardeweg, Bernd},
      title = {EFFICIENT FARMING OPTIONS FOR GERMAN APPLE GROWERS BASED  ON STOCHASTIC DOMINANCE ANALYSIS},
      address = {2015},
      number = {872-2016-60885},
      series = {Schriftlicher Beitrag},
      pages = {13},
      year = {2015},
      abstract = {Apple production is afflicted with various risks. As it is  a permanent crop, apple producers are less flexible to  react upon undesirable events. As a result, for a  sustainable economic performance, the determination of  efficient farming options, as a combination of the  production system and risk management instruments (RMI), is  crucial. Our investigation focuses on this choice problem  utilizing stochastic dominance criteria, which apply to a  wide range of risk preferences. Based on data for 134 apple  producers operating in the two main production areas in  Germany, we compare and determine efficient production  options for the most common regional varieties.  Furthermore, appropriate RMIs are identified using  stochastic dominance criteria. In this context we  investigate internal RMI (frost irrigation and hail nets)  as well as external risk protection tools (insurance  options). In Germany only a single insurance concept  against hail is available, whereas insurance against late  frosts is not at the apple growers’ disposal. As frost  insurance exists in neighboring countries, we analyze the  effect of the latter based on a hypothetic hail-frost  insurance policy.

Simulated net present values of a one  hectare level serve as decision criterion, for which the  associated cumulative probability distributions are  evaluated according to first and second degree stochastic  dominance criteria. In addition, we use SERF (Stochastic  Efficiency with Respect to a Function) as it evaluates  farming options for defined ranges of relative risk  aversion and thus has a higher discriminative power.

The  results indicate that Red Prince is the most efficient  option in the north and subsidized hail insurance with  frost irrigation is superior to frost irrigation as single  RMI. In the south Braeburn should be chosen under rational  aspects, but the tested insurance solutions are not as  efficient as the common production practice under hail  nets.},
      url = {http://ageconsearch.umn.edu/record/209210},
      doi = {https://doi.org/10.22004/ag.econ.209210},
}