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Optimal Land Allocation and Production Timing for FreshVegetable Growers under Price and Production Uncertainty

Published online by Cambridge University Press:  26 January 2015

Michael Vassalos ,
Carl R. Dillon  and
Timothy Coolong
Michael Vassalos
Affiliation:
School of Agricultural, Forest and Environmental Sciences, Clemson University, Clemson, South Carolina
Carl R. Dillon
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, Kentucky
Timothy Coolong
Affiliation:
Department of Horticulture, Tifton Campus, University of Georgia, Tifton, Georgia
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Abstract

Production timing is an essential element in fresh vegetable growers'efforts to maximize profitability and reduce income risks. The present studyuses biophysical simulation modeling coupled with a dual crop (tomatoes,sweet corn) whole-farm economic formulation to analyze the effects ofgrowers' risk aversion levels and price consideration (seasonal or annualprice consideration) in expected net returns and production practices. Thefindings indicate that consideration of seasonal price trends results inhigher expected net returns and greater opportunities to mitigate risk.Furthermore, risk aversion levels substantially influence production timingwhen seasonal price trends are considered.

Keywords

biophysical simulationfarm managementmean varianceprice seasonalityvegetable productionC61C63D81
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 45 , Issue 4 , November 2013 , pp. 683 - 699
Copyright
Copyright © Southern Agricultural Economics Association 2013

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