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.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Web page: http://waeaonline.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.:
- Knoeber, Charles R, 1997. "Explaining State Bans on Corporate Farming," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 151-66, January.
- Drabenstott, Mark, 1994. "Industrialization: Steady Current or Tidal Wave?," Choices, Agricultural and Applied Economics Association, vol. 9(4).
- Ervin, David E. & Smith, Katherine R., 1994. "Agricultural Industrialization and Environmental Quality," Choices, Agricultural and Applied Economics Association, vol. 9(4).
- 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).
- Lawrence, John D. & Otto, Daniel & Meyer, Seth D., 1997. "Purchasing Patterns of Hog Producers: Implications for Rural Agribusiness," Staff General Research Papers 5149, Iowa State University, Department of Economics.
- Hurt, Christopher, 1994. "Industrialization in the Pork Industry," Choices, Agricultural and Applied Economics Association, vol. 9(4).
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 references are entirely missing, you can add them using this form.