A typical Texas High Plains cotton farm was simulated over a 10-year planning horizon using the FLIPSIM IV model to compare the effects of (a) participation in the Federal Crop Insurance (FCI) program, (b) participation in the ASCS low yield disaster program with either high or low target...

Previous attempts to measure agricultural decision makers' risk preferences have obtained values of the Arrow-Pratt coefficient in the range of approximately -.0002 to .0012. The recently developed interval approach for elicitation of risk preferences was used to estimate risk attitudes for...

Specialty crops have been cited as means to diversify crop portfolios on the prairies. Lentils, a specialty crop, have high variability in yields and prices but are relatively uncorrelated with the yields and prices of other traditional Saskatchewan crops. In addition, yields and prices of...

A standard model of behavior under uncertainty is used to suggest price risk variables for use in a positive supply study. The suggested variables are intuitively appealing and empirically tested on Pinto bean data. Linearity is assumed and O.L.S. used. The empirical results show that the risk...

A practical technique for estimating decision-makersÂ’ utility functions by survey or group methods is explained and illustrated. Results from a survey of 44 Oregon farmers are reported. Risk attitudes of respondents are related to farm and decision-maker characteristics. Regression analysis...

This study of the farm firm integrates long run investment and financial decisions, and short-run production and marketing decisions into a single decision framework that includes both time and risk. The results suggest that the use of various strategies for managing market risks allow the...

Magnitude estimation, a technique developed by psychology for obtaining ratio scaled values, was used to derive risk-income preferences of ninety-one central Indiana farmers. Both variability-income and bankruptcy-income measures were developed and related to farmers' socio-economic attributes....

The single index model (SIM), developed for analysis of financial assets, is assessed as a tool for evaluating the risk-return tradeoff faced in agricultural enterprise selection. This study tests whether some of the hypotheses underlying the SIM are valid when the SIM is used in agricultural...

Since nearly the entire U.S. output of agricultural commodities is produced by proprietors with limited liability, it is important to understand how limited liability affects decision in a risky environment. This article extends the work of Robinson and Barry; Robinson and Lev; and Robinson,...