The major sources of variability in net farm income on New York dairy farms over the past 10 years are identified using Dairy Farm Business Summary records. The most important source of income variability is the fluctuation in milk prices, followed closely by year-to-year variation in the...

Major sources of variability in net farm income on New York dairy farms over the past 10 years are identified using variance decomposition methods. The most important source of income variability is the fluctuation in milk prices, followed closely by year-to-year variation in the quantity of...

A real option analysis of dry-grind corn ethanol plants compared to a standard net present value analysis (NPV) shows that the option values increase entry prices and lower exit prices of investment and disinvestment considerably. For a large plant, the gross margin of ethanol price over the...

Decomposition methods suggest major contributors to variability in returns to New York dairy farms are purchased feed quantities and milk production; milk price variability contributes substantially less. Decomposing the Gini measure of income inequality indicates that milk revenues and...

Vietnam grew from an insignificant to the world’s second largest coffee producer during the 1990s. To understand this growth, this paper examines Vietnamese coffee growers’ investment decisions using real options theory. The study finds that producers, with variable costs of 19 cents/lb and...

The Weak Axiom of Profit Maximization (WAPM) was used to test how successful each of 70 individual New York State dairy farms was in maximizing profits using nine years of data. The netput vectors were corrected for technological change using nonparametric indices that do not require the...