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Are We Risking Too Much? Perspectives on Risk in Farm Modelling and Farm Management

Author

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  • Pannell, David J.
  • Malcolm, Bill
  • Kingwell, Ross S.

Abstract

Risk and uncertainty have been extensively studied by agricultural economists. In this paper we question some practices and beliefs which arc common among agricultural economists. The most important of these arc (a) the predominant use of static (strategic) frameworks to formally analyse risk, (b) the predominant focus on risk aversion as the motivation for considering risk, (c) the idea that stochastic (i.e. explicitly probabilistic) models are likely to he helpful to farmers in their decision making and (d) the idea that study of risk in agriculture is likely to he an area of especially high social returns.

Suggested Citation

  • Pannell, David J. & Malcolm, Bill & Kingwell, Ross S., 1995. "Are We Risking Too Much? Perspectives on Risk in Farm Modelling and Farm Management," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 171063, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare95:171063
    DOI: 10.22004/ag.econ.171063
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    References listed on IDEAS

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    Cited by:

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    3. Mullen, John D., 2001. "An Economic Persective On Land Degradation Issues," Research Reports 27999, New South Wales Department of Primary Industries Research Economists.
    4. Farquharson, Robert J. & Scott, J. Fiona, 2000. "Analysis of Farming Systems Issues in the Northern Cropping Region of NSW," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123644, Australian Agricultural and Resource Economics Society.
    5. Gicheha, M.G. & Edwards, G.R. & Bell, S.T. & Burtt, E.S. & Bywater, A.C., 2014. "Embedded risk management in dryland sheep systems II. Risk analysis," Agricultural Systems, Elsevier, vol. 124(C), pages 1-11.

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