Stochastic Valuation of Hybrid Rice Technology in Arkansas
Despite the rapid producer adoption of hybrid rice (Oryza sativa L.) in recent years, the economic advantage of hybrid rice in the mid-Southern United States remains disputed. This study compares the economic risk and return of three popularly sown hybrid rice varieties: XL723, Clearfield® (CL) XL729, and CL XL745; and eight conventional rice varieties: Cheniere, CL 142-AR, CL 151, Francis, Roy J, Taggart, Templeton, and Wells; using University of Arkansas experimental test plot data from 2006 – 2010. Paddy and milling yield data on each variety are used to estimate a Just-Pope production function, allowing comparison of mean yields and mean yield variances across varieties. A Monte Carlo simulation is used to compare net returns and net return variance (risk) across hybrid and conventional varieties. Just-Pope estimation results indicate that hybrid varieties exhibit mean paddy yield premiums of 1.1 to 1.8 Mg ha-1 relative to the best performing conventional variety (Francis), furthermore the hybrid yield advantage is not associated with increased yield risk. Among hybrid-CL® and conventional-CL®, varieties, hybrid milling quality is not statistically different than conventional varieties. Among non-CL varieties, the hybrid XL723 exhibits a mean head rice yield (HRY) premium relative to conventional alternatives. Monte Carlo simulation results suggest that the net revenue advantage of hybrid-CL and conventional-CL® varieties makes them preferable to and non-CL conventional alternatives, respectively, across the entire range of producer risk preferences considered in this study.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.saea.org/|
More information through EDIRC
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.:
- Andrés J. Picazo‐Tadeo & Alan Wall, 2011. "Production risk, risk aversion and the determination of risk attitudes among Spanish rice producers," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 451-464, 07.
- Deliberto, Michael A. & Salassi, Michael E., 2011. "Hybrid Rice Production Possibilities in the Southern Rice Producing Region," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers.
- Tack, Jesse B. & Harri, Ardian & Coble, Keith H., 2012.
"More than Mean Effects: Modeling the Effect of Climate on the Higher Order Moments of Crop Yields,"
2012 Annual Meeting, August 12-14, 2012, Seattle, Washington
123330, Agricultural and Applied Economics Association.
- Jesse Tack & Ardian Harri & Keith Coble, 2012. "More than Mean Effects: Modeling the Effect of Climate on the Higher Order Moments of Crop Yields," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1037-1054.
- Melinda Smale & Jason Hartell & Paul W. Heisey & Ben Senauer, 1998. "The Contribution of Genetic Resources and Diversity to Wheat Production in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 482-493.
- Hardaker, J. Brian & Richardson, James W. & Lien, Gudbrand D. & Schumann, Keith D., 2004.
"Stochastic efficiency analysis with risk aversion bounds: a simplified approach,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 48(2), June.
- J. Brian Hardaker & James W. Richardson & Gudbrand Lien & Keith D. Schumann, 2004. "Stochastic efficiency analysis with risk aversion bounds: a simplified approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 253-270, 06.
- Bishop, Carol D. & Curtis, Kynda R. & Kim, Man-Keun, 2010. "Conserving water in arid regions: Exploring the economic feasibility of alternative crops," Agricultural Systems, Elsevier, vol. 103(8), pages 535-542, October.
- Antle, John M & Crissman, Charles C, 1990. "Risk, Efficiency, and the Adoption of Modern Crop Varieties: Evidence from the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 517-37, April.
- Williams, Jeffery R. & Pachta, Matthew J. & Roozeboom, Kraig L. & Llewelyn, Richard V. & Claassen, Mark M. & Bergtold, Jason S., 2012. "Risk Analysis of Tillage and Crop Rotation Alternatives with Winter Wheat," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(04), November.
- Dustin L. Pendell & Jeffery R. Williams & Scott B. Boyles & Charles W. Rice & Richard G. Nelson, 2007. "Soil Carbon Sequestration Strategies with Alternative Tillage and Nitrogen Sources under Risk," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 247-268.
- Barham, E. Hart Bise & Robinson, John R.C. & Richardson, James W. & Rister, M. Edward, 2011. "Mitigating Cotton Revenue Risk Through Irrigation, Insurance, and Hedging," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(04), November.
- Just, Richard E. & Pope, Rulon D., 1978. "Stochastic specification of production functions and economic implications," Journal of Econometrics, Elsevier, vol. 7(1), pages 67-86, February.
- Richardson, James W. & Klose, Steven L. & Gray, Allan W., 2000. "An Applied Procedure For Estimating And Simulating Multivariate Empirical (Mve) Probability Distributions In Farm-Level Risk Assessment And Policy Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(02), August.
- Lawton L. Nalley & Andrew P. Barkley & Allen M. Featherstone, 2010. "The genetic and economic impact of the CIMMYT wheat breeding program on local producers in the Yaqui Valley, Sonora Mexico," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 453-462, 09.
- Nalley, Lawton Lanier & Moldenhauer, Karen A. & Lyman, Nathaniel, 2011. "The Genetic and Economic Impact of the University of Arkansasâ€™s Rice Breeding Program: 1983â€“2007," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(01), February.
- Brorsen, B. Wade & Grant, Warren R. & Rister, M. Edward, 1988. "Some Effects Of Rice Quality On Rough Rice Prices," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(01), July.
- Hans Binswanger, 1980. "Attitudes toward risk: Experimental measurement in rural india," Artefactual Field Experiments 00009, The Field Experiments Website.
- Salvatore Di Falco & Jean-Paul Chavas & Melinda Smale, 2007. "Farmer management of production risk on degraded lands: the role of wheat variety diversity in the Tigray region, Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 147-156, 03.
- Bryant, Kelly J. & Reeves, Jeanne M. & Nichols, Robert L. & Greene, Jeremy K. & Tingle, Christopher H. & Studebaker, Glenn E. & Bourland, Fred M. & Capps, Charles D. & Groves, Frank E., 2008. "Valuing Transgenic Cotton Technologies Using a Risk/Return Framework," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(03), December.
- Annou, Mamane Malam & Wailes, Eric J. & Thomsen, Michael R., 2005. "A Dynamic Decision Model of Technology Adoption under Uncertainty: Case of Herbicide-Resistant Rice," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(01), April.
When requesting a correction, please mention this item's handle: RePEc:ags:saea13:142505. 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.