SMALL FARM PLANNING UNDER RISK: AN APPLICATION OF PARAMETRIC LINEAR PROGRAMMING

M. S. Alam, S. M. Elias and S.M.M. Murshed

Bangladesh Journal of Agricultural Economics, 1997, vol. 20, issue 01, 27

Abstract: The present study was undertaken at the farming systems research area of Jessore district to evolve risk efficient plans. Results of risk programming demonstrate that higher gross margin, labour employment and tractor/power tiller utilization were associated with higher risk. Land utilization increased along with the gross margin-risk frontier. Capital borrowing increased the risk bearing ability of the plans. Capital investment gradually increased with the increase in gross margin and risk. The results showed direction of resource use for minimizing risk at various levels of gross margins. Thus, the results would help in suggesting suitable production plan for the small farms. The farmers can choose the plans according to their personal attitude to risk. This knowledge regarding alternative opportunities corresponding to risk can be of immense help in farm decision making under risky situations.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:ags:bdbjaf:202346

DOI: 10.22004/ag.econ.202346

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