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Impact of Risk Preferences on Crop Rotation Choice

Published online by Cambridge University Press:  15 September 2016

Leigh J. Maynard ,
Jayson K. Harper  and
Lynn D. Hoffman
Leigh J. Maynard
Affiliation:
Department of Agricultural Economics and Rural Sociology, the Pennsylvania State University
Jayson K. Harper
Affiliation:
Department of Agricultural Economics and Rural Sociology, the Pennsylvania State University
Lynn D. Hoffman
Affiliation:
Department of Agronomy, the Pennsylvania State University
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Abstract

Stochastic dominance analysis of five crop rotations using twenty-one years of experimental yield data returned results consistent with Pennsylvania cropping practices. The analysis incorporated yield risk, output price risk, and rotational yield effects. A rotation of two years corn and three years alfalfa hay dominated for approximately risk neutral and risk averse preferences, as did participation in government programs under the 1990 Farm Bill. Crop rotation selection appeared to impact net revenues more than the decision to participate in government programs.

Type
Articles
Information
Agricultural and Resource Economics Review , Volume 26 , Issue 1 , April 1997 , pp. 106 - 114
Copyright
Copyright © 1997 Northeastern Agricultural and Resource Economics Association 

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