IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/93223.html
   My bibliography  Save this article

Using Portfolio Theory to Enhance Wheat Yield Stability in Low-Income Nations: An Application in the Yaqui Valley of Northwestern Mexico

Author

Listed:
  • Nalley, Lawton Lanier
  • Barkley, Andrew P.

Abstract

This study applies portfolio theory to wheat varietal selection decisions in order to find risk-minimizing outcomes while holding historical yields constant. Potential correlation across wheat cultivar yields increases the complexity of cultivar selection decisions, with gains in one attribute (yield potential) often associated with losses in another (yield stability). Using location-specific empirical data, portfolio theory can provide producers in low-income countries a tool for developing a recommended portfolio of varieties given a desired risk-aversion level. Based on data from Mexico’s Yaqui Valley, results suggest that sowing a portfolio of wheat varieties could have lowered yield variance by 22% to 33% in Northwest Mexico.

Suggested Citation

  • Nalley, Lawton Lanier & Barkley, Andrew P., 2010. "Using Portfolio Theory to Enhance Wheat Yield Stability in Low-Income Nations: An Application in the Yaqui Valley of Northwestern Mexico," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(2), August.
  • Handle: RePEc:ags:jlaare:93223
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/93223
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nalley, Lawton & Tsiboe, Francis & Durand-Morat, Alvaro & Thoma, Greg & Shew, Aaron, 2017. "The Economic Impact of Rice Sheath Blight Alleviation in the Mid‐South," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 251955, Southern Agricultural Economics Association.
    2. Mortenson, Ryan & Parsons, Jay & Pendell, Dustin L. & Haley, Scott D., 2012. "Wheat Variety Selection: An Application of Portfolio Theory in Colorado," Western Economics Forum, Western Agricultural Economics Association, vol. 11(02).
    3. Jesse Tack & Andrew Barkley & Lawton Nalley, 2014. "Heterogeneous effects of warming and drought on selected wheat variety yields," Climatic Change, Springer, vol. 125(3), pages 489-500, August.
    4. Bodin, P. & Olin, S. & Pugh, T.A.M. & Arneth, A., 2016. "Accounting for interannual variability in agricultural intensification: The potential of crop selection in Sub-Saharan Africa," Agricultural Systems, Elsevier, vol. 148(C), pages 159-168.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:93223. 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). General contact details of provider: http://edirc.repec.org/data/waeaaea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.