Risk Efficient Perennial Crop Selection: A Motad Approach to Citrus Production

Paul W. Teague and John G. Lee

Journal of Agricultural and Applied Economics, 1988, vol. 20, issue 2, 145-152

Abstract: Numerous studies have analyzed annual crop mix decisions in light of producer risk preferences. Few studies have focused on perennial crop mix decisions. This study attempts to identify not only the optimal mix of grapefruit and oranges for various riskaversion levels, but also optimal planting densities within each species. Experimental plot data from a grapefruit and orange spacing trial over the 1970-82 period were used in a MOTAD formulation to address optimal perennial crop mix and planting density decisions under different capital constraints. An examination of results suggests crop mix and planting density diversification within and across species of citrus as a means of reducing income variability.

Date: 1988
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