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Profit and Variance Analysis of Cotton Production Technologies and Rotation Crops in Georgia

Published online by Cambridge University Press:  28 April 2015

Archie Flanders ,
Fred C. White ,
W. Don Shurley  and
Steve M. Brown
Archie Flanders
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, GA
Fred C. White
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, GA
W. Don Shurley
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, GA
Steve M. Brown
Affiliation:
Department of Crop and Soil Sciences, University of Georgia, Athens, GA
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Abstract

Genetically modified cotton varieties have the potential for increasing returns and/or decreasing labor requirements. A nonlinear optimization model is applied to a whole farm analysis for evaluating cotton production technologies. This model maximizes farm utility, composed of expected returns and their variability, at various risk aversion levels in order to evaluate cotton production technologies. Results show that while conventional cotton maximizes utility in a risk-neutral situation, transgenic cotton varieties entered into the optimal solution as higher levels of risk aversion were considered.

Keywords

cotton production technologiesmathematical optimizationrisk aversionwhole farm analysisC61Q16
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 3 , December 2003 , pp. 685 - 694
Copyright
Copyright © Southern Agricultural Economics Association 2003

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