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Real Options Analysis For Investment In Organic Wheat And Barley Production In South Central North Dakota Using Precision Agriculture Technology

Author

Listed:
  • Ehmke, Mariah D.
  • Golub, Alla A.
  • Harbor, Anetra L.
  • Boehlje, Michael

Abstract

Real options theory is employed to measure the value of investing in organic wheat production using precision agriculture technology. Results reveal that an option to wait until market uncertainty is resolved is valuable. Information obtained via precision agriculture technology is also valuable to producers seeking organic certification.

Suggested Citation

  • Ehmke, Mariah D. & Golub, Alla A. & Harbor, Anetra L. & Boehlje, Michael, 2004. "Real Options Analysis For Investment In Organic Wheat And Barley Production In South Central North Dakota Using Precision Agriculture Technology," 2004 Annual meeting, August 1-4, Denver, CO 20346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20346
    DOI: 10.22004/ag.econ.20346
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    References listed on IDEAS

    as
    1. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
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    Cited by:

    1. Wynn, Katherine & Spangenberg, German & Smith, Kevin & Wilson, William, 2017. "Valuing Genetically Modified Traits in Canola Using Real Options," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    2. Richards, Timothy J. & Acharya, Ram N. & Molina, Ignacio, 2009. "Retail and Wholesale Market Power in Organic Foods," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49329, Agricultural and Applied Economics Association.
    3. Oliver Musshoff & Norbert Hirschauer, 2008. "Adoption of organic farming in Germany and Austria: an integrative dynamic investment perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 135-145, July.

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