IDEAS home Printed from
   My bibliography  Save this article

Measuring The Effect Of Capital Structure And Seasonality On Expected Returns And Risk: The Fresh Market Vegetable Case


  • Prevatt, J. Walter
  • Bauer, Larry L.
  • Kaiser, Eddie H.
  • Rathwell, P. James


The effect of capital structure and seasonality of fresh market vegetables was examined via the Target MOTAD model. The level of capital indebtedness and the selection of either a fall or spring season resulted in significantly different levels of enterprise mixes, expected returns, risk magnitudes, rates of change of risk magnitudes, and operating capital requirements. The fall season demonstrated larger initial levels of risk and larger increases in the level of risk due to increases in indebtedness. The spring season showed larger increases in risk between minimum risk point and the maximum expected return point (linear programming solution) on the risk-efficient frontier. Operating capital requirements were substantially higher for the fall season than for the spring season. The operating capital requirements of the spring season were significantly affected by the level of indebtedness and the magnitude of risk selected by the grower, while the larger operating capital requirements of the fall season were only marginally affected.

Suggested Citation

  • 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(01), July.
  • Handle: RePEc:ags:sojoae:30366

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Zimet, David J. & Spreen, Thomas H., 1986. "A Target Motad Analysis of a Crop and Livestock Farm in Jefferson County, Florida," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(02), pages 175-186, December.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Crop Production/Industries;


    Access and download statistics


    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:30366. 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: .

    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 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.

    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.