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A Stochastic Dominance Analysis of Alternative Marketing Strategies for Mixed Crop Farms in North Florida

Published online by Cambridge University Press:  05 September 2016

Kwabena A. Anaman  and
William G. Boggess
Kwabena A. Anaman
Affiliation:
Department of Food and Resource Economics, University of Florida Bureau of Economic Research and Development, Virginia State University, Petersburg, Virginia
William G. Boggess
Affiliation:
Department of Food and Resource Economics, University of Florida
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Abstract

Cumulative probability distributions of income for management scenarios involving four preharvest marketing strategies are subjected to stochastic dominance analysis to determine risk-efficient sets of strategies for different groups of farmers in North Florida. Results indicate that farmers should behave differently in their choice of marketing strategies according to their risk attitudes. Highly risk-averse farmers should prefer some forward contracting while low risk-averse and risk-loving farmers should prefer cash sales at harvest. Use of the futures markets leads to both higher income and greater risk than forward contracting but lower income and risk than cash sales.

Keywords

marketing strategiesprobability distributionsriskstochastic dominanceuncertainty
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 18 , Issue 2 , December 1986 , pp. 257 - 266
Copyright
Copyright © Southern Agricultural Economics Association 1986

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