On-farm weather risk management in suckler cow farms: A recursive discrete stochastic programming approach
Currently France wants to introduce a weather risk management framework into its agricultural policy for livestock farming. The aim of this paper is to better understand how on-farm risk reducing strategies modify the production system and profit distribution of French suckler cow enterprises. We present in this paper an original bioeconomic model that takes into account both risk anticipation and risk adjustments and that details biotechnical relationships between the different components of the beef cattle production system and their dynamics. On-farm risk management strategies are endogeneized under weather uncertainty and tested on real observed weather sequences. We simulate four scenarios characterized by different risk aversions and feed prices. Results emphasized that production adjustments, particularly the adjustments of area of grassland harvested and the possibility to purchase substitutes to on-farm forage production, improve farmers profit under weather variability. However, limiting the amplitude of these adjustments helps decreasing profit variability. All simulated long term decisions associated to risk reducing strategies encompass a reduction of long term stocking rate and the constitution of feed stocks. The impact of hay feed price on the market has similar effects on the long term strategy.
|Date of creation:||02 Sep 2011|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sullivan, G. M. & Cartwright, T. C. & Farris, D. E., 1981. "Simulation of production systems in East Africa by use of interfaced forage and cattle models," Agricultural Systems, Elsevier, vol. 7(4), pages 245-265, December.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae11:114645. 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)
If references are entirely missing, you can add them using this form.