Ranking Specialty Crop Profitability: Iterative Stochastic Dominance

Joe Parcell () and Jewelwayne Cain

No 170663, 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association

Abstract: This research used stochastic dominance with respect to a function to evaluate producer preference for cropping systems under uncertainty. Six alternative cropping systems were compared for seven different crops. Many times a producer is familiar a developing market opportunity for a specialty crop and the producer has to make a production decision based on yield uncertainty. This research analyzed by how much alternative crop and bio-energy crop yields would need to change to make a producer indifferent between the most preferred (dominant) cropping system and an alternative cropping system. For the current study, the stochastic dominance results indicate that the change in yield necessary is sufficiently large enough to keep producers from accepting the risk of engaging in alternative crop or bio-energy crop production. The paper concludes with study limitations, which the reader is encouraged to review.

Keywords: Crop Production/Industries; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 16
Date: 2014-05-28
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea14:170663

DOI: 10.22004/ag.econ.170663

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