Article contents
A Strategic Agricultural Production Model with Risk and Return Considerations
Published online by Cambridge University Press: 15 September 2016
Abstract
Decision support systems are generally geared to short-term tactical decision making. As an alternative, this paper develops a mathematical programming model to evaluate long-term strategic alternatives in the context of farm-level agricultural production where a broiler farm considers long-term implications of diversification into commercial aquaculture. The model considers a ten-year strategic planning horizon, incorporates financial risk and return considerations, and accommodates capacity variations. Results indicate that a diversification strategy significantly increases farm profitability over a strategic planning horizon while simultaneously maintaining financial risk below a predetermined tolerance level and return on investment above a predetermined level.
- Type
- Articles
- Information
- Copyright
- Copyright © 1994 Northeastern Agricultural and Resource Economics Association
References
- 3
- Cited by