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Effects of Tactical Responses and Risk Aversion on Farm Wheat Supply

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  • Kingwell, Ross S.

Abstract

A discrete stochastic programming model of the farming system of the eastern wheatbelt of Western Australia is used to examine the effect of tactical responses and risk aversion on wheat supply. Including within-season tactical changes to wheat areas decreases the own-price elasticity of supply. By contrast, introducing risk aversion has no consistent effect on the own-price elasticity of supply. The implications for supply models are discussed.

Suggested Citation

  • Kingwell, Ross S., 1994. "Effects of Tactical Responses and Risk Aversion on Farm Wheat Supply," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(01), April.
  • Handle: RePEc:ags:remaae:12393
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    Cited by:

    1. Crowe, Bronwyn & Lindner, Bob & Llewellyn, Rick, 2006. "The benefits and beneficiaries of “public” investment in herbicide use research and development," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 174476, Australian Agricultural and Resource Economics Society.
    2. Mosnier, C. & Agabriel, J. & Lherm, M. & Reynaud, A., 2009. "A dynamic bio-economic model to simulate optimal adjustments of suckler cow farm management to production and market shocks in France," Agricultural Systems, Elsevier, vol. 102(1-3), pages 77-88, October.
    3. Kingwell, Ross S. & Farré, Imma, 2009. "Climate change impacts on investment in crop sowing machinery," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), June.
    4. Brennan, D., 1998. "The impact of river access rules on dairy farm incomes: A case study of the Williams River," Agricultural Systems, Elsevier, vol. 57(4), pages 571-584, August.
    5. Nordblom, Thomas L. & Jones, Randall E. & Medd, Richard W., 2003. "Economics of factor adjusted herbicide doses: a simulation analysis of best efficacy targeting strategies (BETS)," Agricultural Systems, Elsevier, vol. 76(3), pages 863-882, June.
    6. Kingwell, Ross, 1996. "Programming models of farm supply response: The impact of specification errors," Agricultural Systems, Elsevier, vol. 50(3), pages 307-324.
    7. Crowe, Bronwyn & Lindner, Robert K. & Llewellyn, Rick S., 2006. "The Benefits and Beneficiaries of "Public" Investment in Herbicide Use Research and Development," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25330, International Association of Agricultural Economists.
    8. repec:ags:aare05:139334 is not listed on IDEAS
    9. Ross Kingwell & Imma Farré, 2009. "Climate change impacts on investment in crop sowing machinery ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 265-284, April.

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    Keywords

    Demand and Price Analysis;

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