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A Regional Comparison Of Risk-Efficient Soybean Marketing Strategies

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  • McKinnell, Cathy S.
  • Kahl, Kandice H.
  • Curtis, Charles E., Jr.

Abstract

Risk-efficient portfolios from a subset of marketing strategies were identified using Target-MOTAD. Portfolios were generated for Illinois, Arkansas, and South Carolina to determine whether regional price and yield characteristics affected the optimal marketing strategy selection during 1972-1985. The results support previous conclusions that the risk borne when following a combination of marketing strategies was less than the risk of any single marketing strategy examined. The results also show that the marketing strategies representing efficient risk-return combinations for a producer in one region were different from the efficient risk-return combinations for a producer in another region. Therefore, generic marketing advice would have produced results less preferred in one region than in another.

Suggested Citation

  • McKinnell, Cathy S. & Kahl, Kandice H. & Curtis, Charles E., Jr., 1990. "A Regional Comparison Of Risk-Efficient Soybean Marketing Strategies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(1), pages 1-10, July.
    • Handle: RePEc:ags:sojoae:29909
    DOI: 10.22004/ag.econ.29909
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    References listed on IDEAS

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    1. Klinefelter, D.A. & Sonka, S.T. & Baker, C.B., 1980. "Selection And Screening Of Marketing Options For Risk Evaluation," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271567, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    2. Holland, David W. & Purcell, Wayne D. & Hague, Terry, 1972. "Mean-Variance Analysis Of Alternative Hedging Strategies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 4(1), pages 1-6, July.
    3. Persaud, Tillak & Mapp, Harry P., 1980. "Analysis Of Alternative Production And Marketing Strategies In Southwestern Oklahoma: A Motad Approach," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271566, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    4. Myles J. Watts & Larry J. Held & Glenn A. Helmers, 1984. "A Comparison of Target MOTAD to MOTAD," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 32(1), pages 175-186, March.
    5. Black, Fischer, 1976. "The pricing of commodity contracts," Journal of Financial Economics, Elsevier, vol. 3(1-2), pages 167-179.
    6. Holland, David & Purcell, Wayne D. & Hague, Terry, 1972. "Mean-Variance Analysis of Alternative Hedging Strategies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 4(1), pages 123-128, July.
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    Cited by:

    1. Prevatt, J. Walter & Bauer, Larry L. & Kaiser, Eddie H. & Rathwell, P. James, 1992. "Measuring The Effect Of Capital Structure And Seasonality On Expected Returns And Risk: The Fresh Market Vegetable Case," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(1), pages 1-8, July.
    2. Davis, Todd D. & Curtis, Charles E., Jr. & Shumaker, George A. & Smith, Nathan B., 2003. "The Effect Of The 2002 Farm Bill On Crop Enterprise Selection In The Southeast Region," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35207, Southern Agricultural Economics Association.
    3. Harris, Thomas R. & Seung, Chang K. & Narayanan, Rangesan, 2001. "Targeting Economic Diversification: An Application of Target MOTAD Procedures," The Review of Regional Studies, Southern Regional Science Association, vol. 31(2), pages 197-215, Fall.

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