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Analysis Of Risk Management Strategies For Agricultural Producers

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  • Mapp, Harry P.
  • Hardin, Michael L.
  • Walker, Odell L.
  • Persaud, Tillak

Abstract

Risk and uncertainty are pervasive phenomena in production agriculture. Many factors, including weather events, diseases, insect infestations, general economic conditions, the development and adoption of technological innovations, and public and private institutional policies.,interact to create a unique decision making environment for the agricultural producer. General economic conditions in the economy, particularly the inflation rate, have increased prices paid by farm operators for operating inputs and capital equipment, but have had relatively little impact on prices received for products produced in the atomistic, decreasing cost agricultural industry. Rapid increases in input costs have squeezed net returns, created cash flow problems and increased the vulnerability of the firm to financial disaster.

Suggested Citation

  • Mapp, Harry P. & Hardin, Michael L. & Walker, Odell L. & Persaud, Tillak, 1979. "Analysis Of Risk Management Strategies For Agricultural Producers," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea79:278205
    DOI: 10.22004/ag.econ.278205
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    1. Hisham S. El-Osta, 2018. "Strategies to Manage Risk and their Role in Impacting Economic Performance among Farm Households," Applied Economics and Finance, Redfame publishing, vol. 5(2), pages 49-64, March.
    2. Marina V. Korshikova & Irina P. Belikova & Tatyana I. Sakhnyuk & Pavel A. Sakhnyuk & Inna G. Svistunova, 2016. "Methodological Provision of Active Management of Economic Risk in Agrarian Business," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 113-124.
    3. Osaki, Mauro & Batalha, Mário Otavio, 2014. "Optimization model of agricultural production system in grain farms under risk, in Sorriso, Brazil," Agricultural Systems, Elsevier, vol. 127(C), pages 178-188.
    4. Gouzaye, Amadou & Vitale, Jeffrey D. & Epplin, Francis M. & Adam, Brian D. & Stoecker, Arthur L., 2013. "The Value of Price Stabilization Policy for Cotton Producers in Burkina Faso," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142882, Southern Agricultural Economics Association.
    5. Boisvert, Richard N., 1985. "The Role Of Alternative Risk Programming Models In Empirical Research," Regional Research Projects > 1985: S-180 Annual Meeting, March 24-27, 1985, Charleston, South Carolina 271793, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    6. Groover, Gordon E., 1989. "An Evaluation Of Production And Marketing Strategies: A Portfolio Approach," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270694, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. van Zyl, J. & Groenewald, J. A., 1986. "A Comparison Of Certain Decision-Making Techniques Under Risk - An Empirical Investigation Of Maize Cultivar Selection," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 25(1), February.
    8. Cheng, Mei-luan & Gloy, Brent A., 2008. "The Paradox of Risk Balancing: Do Risk-reducing Policies Lead to More Risk for Farmers?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6546, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Yanyuan Zhang & Xintong Wu, 2023. "Risk Management Effects of Insurance Purchase and Organization Participation: Which Is More Effective?," Agriculture, MDPI, vol. 13(10), pages 1-16, September.
    10. Adesina, A. A. & Ouattara, A. D., 2000. "Risk and agricultural systems in northern Cote d'Ivoire," Agricultural Systems, Elsevier, vol. 66(1), pages 17-32, October.
    11. Hammida, Mustapha & Eidman, Vernon R., 1991. "Livestock And Poultry Production Risk In The United States," Staff Papers 14016, University of Minnesota, Department of Applied Economics.
    12. Bechtel, Amos I. & Young, Douglas L., 1999. "The Importance Of Using Farm Level Risk Estimates In Crp Enrollment Decisions," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35717, Western Agricultural Economics Association.
    13. Teague, Paul W. & Lee, John G., 1988. "Risk Efficient Perennial Crop Selection: A Motad Approach To Citrus Production," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(2), pages 1-8, December.
    14. Hatch, L. Upton & Atwood, Joseph A. & Segar, James, 1989. "An Application Of Safety-First Probability Limits In A Discrete Stochastic Farm Management Programming Model," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-8, July.
    15. Mumey, G.A. & Bauer, L. & Boyda, A., 1988. "An Estimate of Risk and Returns From Cropping Alternatives," Project Report Series 232065, University of Alberta, Department of Resource Economics and Environmental Sociology.
    16. Vieth, Gary R. & Suppapanya, Pramote, 1996. "An Evaluation Of Selected Decision Models: A Case Of Crop Choice In Northern Thailand," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-11, December.

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