Enhancing Farm Profitability through Portfolio Analysis: The Case of Spatial Rice Variety Selection
AbstractThe objectives of this paper is to use the large depth of existing literature on portfolio theory and apply it to rice varietal selection for 6 counties in the Arkansas Delta. Results based on 1999-2006 data suggests that combining available varieties using portfolio theory could have increased profits from 3 to 26% (dependent on location) in the Arkansas Delta. The major implication of this research is that data and statistical tools are available to improve the choice of rice varieties to plant each year in specific locations within Arkansas. Specifically, there are large potential gains from combining varieties that are characterized by inverse yield responses to growing conditions such as drought, pest infestation, or the presence of a specific disease.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 45648.
Date of creation: Jan 2009
Date of revision:
Rice; portfolio analysis; optimal variety selection; risk analysis.; Production Economics; D81; Q16; Q12;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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- Barkley, Andrew P. & Peterson, Hikaru Hanawa, 2008. "Wheat Variety Selection: An Application of Portfolio Theory to Improve Returns," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37597, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
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- Steven C. Blank & Danny Klinefelter, 2012. "Keeping ARMS relevant: increasing its usability," Agricultural Finance Review, Emerald Group Publishing, vol. 72(2), pages 222-232, July.
- Watkins, K. Bradley & Hristovska, Tatjana & Mazzanti, Ralph & Wilson, Charles E., Jr., . "Measuring Technical, Allocative, and Economic Efficiency of Rice Production in Arkansas using Data Envelopment Analysis," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142962, Southern Agricultural Economics Association.
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