Advanced Search
MyIDEAS: Login to save this paper or follow this series

Using alterative whole-farm modelling approaches to assess farm enterprise selection, risk and welfare

Contents:

Author Info

  • Komarek, Adam M.
  • MacAulay, T. Gordon
Registered author(s):

    Abstract

    Using an expected mean-variance model the changes in farm enterprise levels and indirect utility were examined under conditions of risk aversion, budget constraints and gross margin variance. An extension of the comparative statics of the expected mean-variance model was adopted by introducing a budget constraint into the constrained optimisation problem. A 10-year expected mean-variance whole-farm model was solved for a farm in the wheat-sheep zone of Australia to provide an empirical example. Results were obtained using no planning horizon (the static model) and then with a five-year rolling planning horizon (the dynamic model). In addition, enterprise levels were constrained to match levels observed on the farm so as to compare incomes between the constrained and unconstrained models. For a cash constrained, risk averse, farmer it was found that they are likely to have larger expenditures than less risk averse operators in order to obtain the same indirect utility. Enterprise levels differed between the dynamic and static models, and a dynamic model was used to help explain inter-temporal decision-making. Risk aversion reduced the set of possible welfare improving production activities available to a farmer.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://purl.umn.edu/100574
    Download Restriction: no

    Bibliographic Info

    Paper provided by Australian Agricultural and Resource Economics Society in its series 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia with number 100574.

    as in new window
    Length:
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:ags:aare11:100574

    Contact details of provider:
    Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
    Phone: 0409 032 338
    Email:
    Web page: http://www.aares.info/
    More information through EDIRC

    Related research

    Keywords: Whole-farm modelling; enterprise selection; risk.; Farm Management; Q12; C61;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ags:aare11:100574. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.