A STRATEGIC AGRICULTURAL PRODUCTION MODEL WITH RISK AND RETURN CONSIDERATIONS

Aull-Hyde, Rhonda L. and Solomon A. Tadesse ()

Agricultural and Resource Economics Review, 1994, vol. 23, issue 1

Abstract: Decision support systems are generally geared to short-term tactical decision making. As an alternative, this paper develops a mathematical programming model to evaluate long-term strategic alternatives in the context of farm-level agricultural production where a broiler farm considers long-term implications of diversification into commercial aquaculture. The model considers a ten-year strategic planning horizon, incorporates financial risk and return considerations, and accommodates capacity variations. Results indicate that a diversification strategy significantly increases farm profitability over a strategic planning horizon while simultaneously maintaining financial risk below a predetermined tolerance level and return on investment above a predetermined level.

Keywords: Production Economics (search for similar items in EconPapers)
Date: 1994
View list of references

Downloads: (external link)
http://purl.umn.edu/31312 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ags:arerjl:31312

Access Statistics for this article

More articles in Agricultural and Resource Economics Review from Northeastern Agricultural and Resource Economics Association
Contact information at EDIRC.
Series data maintained by AgEcon Search ().