Profits And Risk: Fitting An Old Framework To A New Agriculture
Textbooks in agricultural economics characterize resources used in production agriculture into four categories; land, labor, capital and management. Profit is presented as earned in the process of management. This traditional list of resources is respecified. Management becomes a specialized type of labor and two additional resources, information and the willingness and ability to bear risk, are added. It is argued that profits accrue not to management but to those willing and able to bear the risk inherent in production agriculture. The strategy of equity diversification is presented as a means for farmers to provide this resource and thus earn economic profits. Producer education and the repeal or amendment of legislation restricting the ability of farmers to diversify their equity investment are needed.
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.:
- Drabenstott, Mark, 1994. "Industrialization: Steady Current or Tidal Wave?," Choices, Agricultural and Applied Economics Association, vol. 9(4), pages -.
- Lawrence, John D. & Otto, Daniel & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Staff General Research Papers Archive 5149, Iowa State University, Department of Economics.
- W. Timothy Rhodus & E. Dean Baldwin & Dennis R. Henderson, 1989. "Pricing Accuracy and Efficiency in a Pilot Electronic Hog Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 874-882.
- Lawrence, John D. & Otto, Daniel M. & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 15(1).
- Wachenheim, Cheryl J. & Saxowsky, David M., 2002.
"Profits And Risk: Fitting An Old Framework To A New Agriculture,"
Agribusiness & Applied Economics Report
23532, North Dakota State University, Department of Agribusiness and Applied Economics.
- Wachenheim, Cheryl J. & Saxowsky, David, 2003. "Profits and Risk: Fitting an Old Framework to a New Agriculture," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, pages -.
- Saxowsky, David M. & Wachenheim, Cheryl J., 2001. "Profits And Risk: Fitting An Old Framework To A New Agriculture," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36133, Western Agricultural Economics Association.
- Knoeber, Charles R, 1997. "Explaining State Bans on Corporate Farming," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 151-66, January.
- Ervin, David E. & Smith, Katherine R., 1994. "Agricultural Industrialization and Environmental Quality," Choices, Agricultural and Applied Economics Association, vol. 9(4), pages -.
- Hurt, Christopher, 1994. "Industrialization in the Pork Industry," Choices, Agricultural and Applied Economics Association, vol. 9(4), pages -.
When requesting a correction, please mention this item's handle: RePEc:ags:waealo:36133. 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 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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.