IDEAS home Printed from https://ideas.repec.org/a/ags/sojoae/29766.html
   My bibliography  Save this article

A Stochastic Dominance Analysis Of Alternative Marketing Strategies For Mixed Crop Farms In North Florida

Author

Listed:
  • Anaman, Kwabena A.
  • Boggess, William G.

Abstract

Cumulative probability distributions of income for management scenarios involving four pre-harvest marketing strategies are subjected to stochastic dominance analysis to determine risk-efficient sets of strategies for different groups of farmers in North Florida. Results indicate that farmers should behave differently in their choice of marketing strategies according to their risk attitudes. Highly risk-averse farmers should prefer some forward contracting while low risk-averse and risk loving farmers should prefer cash sales at harvest. Use of the futures markets leads to both higher income and greater risk than forward contracting but lower income and risk than cash sales.

Suggested Citation

  • Anaman, Kwabena A. & Boggess, William G., 1986. "A Stochastic Dominance Analysis Of Alternative Marketing Strategies For Mixed Crop Farms In North Florida," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-9, December.
    • Handle: RePEc:ags:sojoae:29766
    DOI: 10.22004/ag.econ.29766
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/29766/files/18020257.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.29766?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Falatoonzadeh, Hamid & Conner, J. Richard & Pope, Rulon D., 1985. "Risk Management Strategies To Reduce Net Income Variability For Farmers," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(1), pages 1-14, July.
    2. Purcell, Wayne D. & Riffe, Don A., 1980. "The Impact Of Selected Hedging Strategies On The Cash Flow Position Of Cattle Feeders," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-9, July.
    3. Meyer, Jack, 1977. "Choice among distributions," Journal of Economic Theory, Elsevier, vol. 14(2), pages 326-336, April.
    4. Robert P. King & George E. Oamek, 1983. "Risk Management by Colorado Dryland Wheat Farmers and the Elimination of the Disaster Assistance Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 247-255.
    5. Bobst, Barry W. & Grunewald, Orlen C. & Davis, J. T., 1982. "Efficient Cash and Hedged Enterprise Combinations in Feeder Calf Backgrounding Operations," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 14(2), pages 105-110, December.
    6. Bailey, DeeVon & Brorsen, B. Wade & Richardson, James W., 1984. "Dynamic Stochastic Simulation of Daily Cash and Futures Cotton Prices," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(2), pages 109-116, December.
    7. Rister, M. Edward & Skees, Jerry R. & Black, J. Roy, 1984. "Evaluating Use Of Outlook Information In Grain Sorghum Storage Decisions," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-8, July.
    8. Randall A. Kramer & Rulon D. Pope, 1981. "Participation in Farm Commodity Programs: A Stochastic Dominance Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 119-128.
    9. Falatoonzadeh, Hamid & Conner, J. Richard & Pope, Rulon D., 1985. "Risk Management Strategies to Reduce Net Income Variability for Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(1), pages 117-130, July.
    10. Bobst, Barry W. & Grunewald, Orlen C. & Davis, Joe T., 1982. "Efficient Cash And Hedged Enterprise Combinations In Feeder Calf Backgrounding Operations," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(2), pages 1-6, December.
    11. Philip Garcia & Raymond M. Leuthold & Mohamed E. Sarhan, 1984. "Basis Risk: Measurement and Analysis of Basis Fluctuations for Selected Livestock Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(4), pages 499-504.
    12. Sullivan, Gregory M. & Linton, Daniel A., 1981. "Economic Evaluation of an Alternative Marketing System For Feeder Cattle in Alabama," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 13(2), pages 85-89, December.
    13. Sullivan, Gregory M. & Linton, Daniel A., 1981. "Economic Evaluation Of An Alternative Marketing System For Feeder Cattle In Alabama," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(2), pages 1-5, December.
    14. Rulon D. Pope & Rod F. Ziemer, 1984. "Stochastic Efficiency, Normality, and Sampling Errors in Agricultural Risk Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(1), pages 31-40.
    15. Rister, M. Edward & Skees, Jerry R. & Black, J. Roy, 1984. "Evaluating Use of Outlook Information in Grain Sorghum Storage Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 16(1), pages 151-158, July.
    16. Wilson, Paul N. & Eidman, Vernon R., 1983. "An Empirical Test Of The Interval Approach For Estimating Risk Preferences," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(2), pages 1-13, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. T. P. Zacharias & D. A. Zaunbrecher & H. D. Traylor & B. E. McManus, 1987. "An analysis of preharvest soybean marketing strategies in louisiana using forward and futures contracts," Agribusiness, John Wiley & Sons, Ltd., vol. 3(4), pages 413-426.
    2. Goh, Siew & Shih, Chao-Chyuan & Cochran, Mark J. & Raskin, Rob, 1989. "A Generalized Stochastic Dominance Program For The Ibm Pc," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-8, December.
    3. Cochran, Mark J., 1986. "Stochastic Dominance: The State Of The Art In Agricultural Economics," Regional Research Projects > 1986: S-180 Annual Meeting, March 23-26, 1986, Tampa, Florida 271995, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goh, Siew & Shih, Chao-Chyuan & Cochran, Mark J. & Raskin, Rob, 1989. "A Generalized Stochastic Dominance Program For The Ibm Pc," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-8, December.
    2. 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.
    3. Cochran, Mark J., 1986. "Stochastic Dominance: The State Of The Art In Agricultural Economics," Regional Research Projects > 1986: S-180 Annual Meeting, March 23-26, 1986, Tampa, Florida 271995, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    4. Raskin, Rob & Cochran, Mark J., 1986. "Interpretations And Transformations Of Scale For The Pratt-Arrow Absolute Risk Aversion Coefficient: Implications For Generalized Stochastic Dominance," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-7, December.
    5. Bruce A. McCarl & David A. Bessler, 1989. "Estimating An Upper Bound On The Pratt Risk A Version Coefficient When The Utility Function Is Unknown," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 56-63, April.
    6. Tabesh, Hamid, 1987. "Hedging price risk to soybean producers with futures and options: a case study," ISU General Staff Papers 1987010108000010306, Iowa State University, Department of Economics.
    7. McCarl, Bruce A., 1988. "Preference Among Risky Prospects Under Constant Risk Aversion," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 20(2), pages 25-34, December.
    8. Harrison, R. Wes, 1998. "Stochastic Dominance Analysis of Futures and Option Strategies for Hedging Feeder Cattle," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 270-280, October.
    9. Maynard, Leigh J. & Harper, Jayson K. & Hoffman, Lynn D., 1997. "Impact Of Risk Preferences On Crop Rotation Choice," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-9, April.
    10. Babcock, Bruce A. & Choi, E. Kwan & Feinerman, Eli, 1993. "Risk And Probability Premiums For Cara Utility Functions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(1), pages 1-8, July.
    11. Ritchie, John W. & Abawi, G. Yahya & Dutta, Sunil C. & Harris, Trevor R. & Bange, Michael, 2004. "Risk management strategies using seasonal climate forecasting in irrigated cotton production: a tale of stochastic dominance," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 1-29.
    12. N. Becker, 1999. "A comparative analysis of water price support versus drought compensation scheme," Agricultural Economics, International Association of Agricultural Economists, vol. 21(1), pages 81-92, August.
    13. John W. Ritchie & G. Yahya Abawi & Sunil C. Dutta & Trevor R. Harris & Michael Bange, 2004. "Risk management strategies using seasonal climate forecasting in irrigated cotton production: a tale of stochastic dominance," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 65-93, March.
    14. Schoney, R. A., 1990. "An Analysis of Wheat Supply Response Under Risk and Uncertainty," Working Papers 244030, Agriculture and Agri-Food Canada.
    15. Mintert, James & Blair, Joanne & Schroeder, Ted & Brazle, Frank, 1990. "Analysis of Factors Affecting Cow Auction Price Differentials," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 22(2), pages 23-30, December.
    16. Jones, Rodney D. & Schroeder, Ted C. & Mintert, James R. & Brazle, Frank, 1992. "The Impacts Of Quality On Cash Fed Cattle Prices," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-14, December.
    17. 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.
    18. Drynan, Ross G., 1986. "A Note On Optimal Rules For Stochastic Efficiency Analysis," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(1), pages 1-10, April.
    19. Hinson, Roger A. & Lee, John G. & Huh, Mooyul, 1990. "Evaluation Of Selected Fresh Vegetable Terminal Markets: A Stochastic Dominance Approach," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(2), pages 1-10, December.
    20. Dhuyvetter, Kevin C. & Schroeder, Ted C. & Simms, Danny D. & Bolze, Ronald P., Jr. & Geske, Jeremy, 1996. "Determinants Of Purebred Beef Bull Price Differentials," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(2), pages 1-15, December.

    More about this item

    Keywords

    Agribusiness;

    Statistics

    Access and download statistics

    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:sojoae:29766. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.