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A Stochastic Programming Analysis of the Farm Level Implications of Soil Erosion Control

Published online by Cambridge University Press:  28 April 2015

Eduardo Segarra
Affiliation:
Department of Agricultural Economics, Virginia Polytechnic Institute and State University
Randall A. Kramer
Affiliation:
Department of Agricultural Economics, Virginia Polytechnic Institute and State University
Daniel B. Taylor
Affiliation:
Department of Agricultural Economics, Virginia Polytechnic Institute and State University

Abstract

This paper analyzes the effects of uncertain soil loss in farm planning models. A disaggregated approach was used because of an interest in examining the impact of probabilistic soil loss constraints on farm level decisionmaking. A stochastic programming model was used to consider different levels of probability of soil loss. Traditional methods of analysis are shown to consistently overestimate net returns.

Type
Articles
Copyright
Copyright © Southern Agricultural Economics Association 1985

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