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Irrigation And Potential Diversification Benefits In Humid Climates

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  • Vandeveer, Lonnie R.
  • Paxton, Kenneth W.
  • Lavergne, David R.
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    Abstract

    Income variability and means for managing risk continue to receive much attention in farm management research. In this paper, irrigation is presented as a risk-management strategy that offers potential diversification benefits. Potential diversification opportunities largely result from a wider range of enterprise production activities. A portfolio analysis of dryland and irrigated farm scenarios indicates that income stabilizing and diversification effects of irrigation substantially modify the risk-return position of a typical farm in northeast Louisiana. Safety-first considerations along with Target MOTAD programming procedures also are used to evaluate the impact of irrigation on the farm's financial performance.

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    File URL: http://purl.umn.edu/30106
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    Bibliographic Info

    Article provided by Southern Agricultural Economics Association in its journal Southern Journal of Agricultural Economics.

    Volume (Year): 21 (1989)
    Issue (Month): 02 (December)
    Pages:

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    Handle: RePEc:ags:sojoae:30106

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    Web page: http://www.saea.org/jaae/jaae.htm
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    Keywords: Farm Management;

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