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The new risk environment in California agriculture

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  • Steven C. Blank

    (Agricultural Economics Department at the University of California, Davis, Davis, CA 95616-8512)

Abstract

A perceived increase in the risk environment of agricultural production in California is found to have significant economic implications. Using a portfolio model, hypotheses are derived concerning the reaction of individual producers to the shift in risk. Survey results indicate that agricultural producers are reacting in a manner consistent with a hypothesized „transition period” that could last several years before a new equilibrium is found. Unfortunately, the timing of this transition may be adding to the recessionary conditions within California's economy. © 1995 by John Wiley & Sons, Inc.

Suggested Citation

  • Steven C. Blank, 1995. "The new risk environment in California agriculture," Agribusiness, John Wiley & Sons, Ltd., vol. 11(2), pages 155-168.
  • Handle: RePEc:wly:agribz:v:11:y:1995:i:2:p:155-168
    DOI: 10.1002/1520-6297(199503/04)11:2<155::AID-AGR2720110208>3.0.CO;2-N
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    References listed on IDEAS

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    1. Robert A. Collins & Peter J. Barry, 1986. "Risk Analysis with Single-Index Portfolio Models: An Application to Farm Planning," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 152-161.
    2. S. R. Johnson, 1967. "A Re-examination of the Farm Diversification Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(3), pages 610-621.
    3. Turvey, Calum G. & Baker, Timothy G. & Weersink, Alfons, 1992. "Farm Operating Risk And Cash Rent Determination," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-7, July.
    4. Bernard V. Tew & Donald W. Reid & Giles T. Rafsnider, 1992. "Rational Mean-Variance Decisions for Subsistence Farmers," Management Science, INFORMS, vol. 38(6), pages 840-845, June.
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    Cited by:

    1. Meuwissen, Miranda P.M. & Huirne, Ruud B.M. & Hardaker, J. Brian, 1999. "Perceptions Of Risks And Risk Management Strategies; An Analysis Of Dutch Livestock Farmers," 1999 Annual meeting, August 8-11, Nashville, TN 21507, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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