IRRIGATION AND POTENTIAL DIVERSIFICATION BENEFITS IN HUMID CLIMATES

Lonnie R. Vandeveer, Kenneth W. Paxton and David R. Lavergne

Southern Journal of Agricultural Economics, 1989, vol. 21, issue 2, 8

Abstract: Income variability and means for managing risk continue to receive much attention in farm management research. In this paper, irrigation is presented as a risk-management strategy that offers potential diversification benefits. Potential diversification opportunities largely result from a wider range of enterprise production activities. A portfolio analysis of dryland and irrigated farm scenarios indicates that income stabilizing and diversification effects of irrigation substantially modify the risk-return position of a typical farm in northeast Louisiana. Safety-first considerations along with Target MOTAD programming procedures also are used to evaluate the impact of irrigation on the farm's financial performance.

Keywords: Farm; Management (search for similar items in EconPapers)
Date: 1989
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:sojoae:30106

DOI: 10.22004/ag.econ.30106

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