Skip to main content Accessibility help

Production Practice Alternatives for Income and Suitable Field Day Risk Management

  • Carl R. Dillon (a1)


Production risk includes yield and days suitable for fieldwork variability. Both were modeled using biophysical simulation and a mean-variance, chance-constrained mathematical programming formulation representing a Kentucky corn, soybean, and wheat producer. While crop diversification, planting date, and maturity group can be used to reduce the types of risk considered, interaction between the two influences how production practices are used to manage risk. For the conditions studied, plant population alterations were less effective for risk reduction of either component. The study provides evidence of the importance of the consideration of both elements of production risk in whole farm planning.



Hide All
Acharya, B.P., Hayes, J.C., and Brown, L.C.. “Available Working Days in the Mid-South.” Paper presented at the American Society of Agricultural Engineering meeting, Chicago, Illinois, 1983.
Anderson, J.R., Dillon, J.L., and Hardaker, J.B.. Agricultural Decision Analysis. Ames, IA: Iowa State University Press, 1977.
Apland, J., Barne, R.N.. and Justus, F.. The Farm Lease: “An Analysis of Owner-Tenant and Landlord Preferences under Risk.American Journal of Agricultural Economics 66(1984): 376384.
Apland, J.D. and Kaiser, H.. “Discrete Stochastic Sequential Programming: A Primer.” Staff Papers Series, Paper P84–8. Institute of Agriculture, Forestry and Home Economics. St. Paul, MN: University of Minnesota, 1984.
Babeir, A.S., Colvin, A.S., and Marley, S.J.. “Predicting Field Tractability with a Simulation Model.” Paper presented at the American Society of Agricultural Engineering meeting, East Lansing, Michigan, 1985.
Boggess, W.G. and Amerling, C.B.. “A Bioeconomic Simulation Analysis of Irrigation Investments.Southern Journal of Agricultural Economics 15:2(1983):8591.
Boggess, W.G. and Ritchie, J.T.. “Economic and Risk Analysis of Irrigation Decisions in Humid Regions.Journal of Production Agriculture 1:2(1988):116122.
Boisvert, R.N. and Jensen, H.. “A Method for Planning Under Uncertain Weather Conditions, with Applications to Corn-Soybean Farming in Southern Minnesota.” University of Minnesota Agricultural Experiment Station Technical Bulletin No. 292, 1973.
Boisvert, R.N. and McCarl, B.A.. “Agricultural Risk Modeling Using Mathematical Programming.Southern Cooperative Series Bulletin No. 356. Cornell University, New York. July 1990.
Charnes, A. and Cooper, W.W. “Chance Constrained Programming.Management Science 6(1959):7379.
Cocks, K.D.Discrete Stochastic ProgrammingManagement Science 15(1968):7279.
Danok, A.B., McCarl, B.A., and White, T.K.. “Machinery Selection Modeling: Incorporation of Weather Variability.American Journal of Agricultural Economics 62(1980):700708.
Dillon, C.R.Microeconomic Effects of Reduced Yield Variability Cultivars of Soybeans and Wheat.Southern Journal of Agricultural Economics 24:1(1992): 121133.
Dillon, C.R., Mjeld, J.W.. and McCarl, B.A.. “Biophysical Simulation in Support of Crop Production Decisions: A Case Study in the Blacklands Region of Texas.Southern Journal of Agricultural Economics 21(1989):7386.
Donald, W.W and Prato, T.. “Efficiency and Economics of Herbicides for Canada Thistle (Cirsium arvense) Control in No-Till Spring Wheat (Triticum aestivum).” Weed Science 40:2(1992): 233240.
Dubman, R.W., Gunte, L.F.. and Miller, B.R.. “Revenue and Cost Uncertainty, Generalized Mean-Variance and the Linear Complementarity Problem: Comment.American Journal of Agricultural Economics 61(1989):806809.
Elliott, R.L., Lembke, W.D., and Hunt, D.R.. “A Simulation Model for Predicting Available Days for Soil Tillage.Transactions American Society of Agricultural Engineering 20(1981): 288-291, 295.
Epplin, F.M. and Al-Sakkaf, G.A.. “Risk-Efficient Tillage Systems and Program Participation Strategies for Land Subject to Conservation. Review of Agricultural Economics 17(1995): 242, 311321.
Etyang, M.N., Preckel, P.V., Binkley, J.K., and Doster, D.H.. “Field Time Constraints for Farm Planning Models.Agricultural Systems 58:1(1998): 2537.
Freund, R.J.The Introduction of Risk into a Programming Model.Econometrica 24(1956): 253264.
Gerloff, D.C. and Maxey, L.. Field Crop Budgets for 1998. Tennessee Agricultural Extension Service. AE and RD#30. January 1998.
Gibson, C.D.Enterprise Analysis, Ohio Valley Farm Analysis Group, 1993–1997. University of Kentucky Cooperative Extension Service. 1998.
Grisley, W.Farmer-to-Farmer Transfer of New Crop Varieties: An Empirical Analysis on Small Farms in Uganda.” Agricultural Economics 11,1(1994):4349.
Hardaker, J.B., Hiurne, R.B.M., and Anderson, J.R.. Coping with Risk in Agriculture. CAB International. 1997.
Harrigan, T.M., Bickert, W.G., and Rozt, C.A.. “Simulation of Dairy Manure Management and Cropping Systems.Applied Engineering in Agriculture 12:5(1996):563574.
Harris, T.R. and Mapp, H.R. “A Stochastic Dominance Comparison of Water-Conserving Irrigation Strategies.American Journal of Agricultural Economics 68:2(1986):298305.
Hurd, B.H.Yield Response and Production Risk: An Analysis Integrated Pest Management in Cotton.Journal of Agricultural Resources Economics 19:2(1994):313326.
Krause, M.A. and Black, J.R.. “Optimal Adoption Strategies for No-Till Technology in Michigan.Review of Agricultural Economics 17:3(1995):299310.
Kentucky Agricultural Statistics Service. Kentucky Agricultural Statistics. Various years. National Agricultural Statistics Service of USDA and Kentucky Department of Agriculture.
Lapan, H. and Moschini, G.. “Futures Hedging Under Price, Basis and Production Risk.American Journal of Agricultural Economics 76:3(1994):465477.
Larson, J.A. and Mapp, H.P.. “Cotton Cultivar, Planting, Irrigating and Harvesting Decisions Under Risk.Journal of Agricultural Resources Economics 22:1(1997):157173.
Larson, J.A., Mapp, H.P., Verhale, L.M.. and Banks, J.C.. “Adapting a Cotton Model for Decision Analyses: A Yield-Response Evaluation.Agricultural Systems 50:2(1996): 145167.
Leatham, D.J. and Baker, T.G.. “Farmers' Choice of Fixed and Adjustable Interest Rate Loans.American Journal of Agricultural Economics 70(1988):803812.
Markowitz, H.Portfolio Selection.Journal of Finance., 12(1952):7791.
McCarl, B.A. and Bessler, D.. “Estimating an Upper Bound on the Pratt Risk Aversion Coefficient When the Utility Function is Unknown.Australian Journal of Agricultural Economes 33(1989):5663.
Meyer, J.Two-Moment Decision Models and Expected Utility Maximization.American Economics Review 77(1987):421430.
Misra, S.K. and Spurlock, S.R.. “Incorporating the Impacts of Uncertain Fieldwork Time on Whole-Farm Risk-Return Levels: A Target MO-TAD Approach.Southern Journal of Agricultural Economics 23:2(1991):917.
Mjelde, J.W, Cothren, J.T., Rister, M.E.. Hons, F.M., Coffman, C.G., Shumway, C.R. and Lemon, R.G.. “Integrating Data From Various Field Experiments: The Case of Corn in Texas.Journal of Production Agriculture 4:1(1991):139147.
Morgan, R.D. The Kentucky Farm Business Management Program 1997 Annual Summary. University of Kentucky cooperative Expension service. Agricultural Economics–Extension Series No. 98-03. 1998.
Olson, K.D. and Eidman, V.R.. “A Farmer's Choice of Weed Control Method and the Impacts of Policy and Risk.Review of Agricultural Economics 14:1(1992):125137.
Olson, K.D., Martin, N.P., Hick, D.R.. and Schmidt, M.A.. “Economic Analysis of Including an Annual Forage in a Corn-Soybean Farming System.Journal of Production Agriculture 4:4(1991):599606.
Oriade, C.A., Dillon, C.R. and Keisling, T.C.. “Economics of Wheat Residue Management in Doublecrop Soybean.” Journal of Production Agriculture. Forthcoming.
Pannell, D.J.Optimal Herbicide Strategies for Weed Control Under Risk Aversion.Review of Agricultural Economics 17:3(1995):243, 337350.
Paris, Q.Revenue and Cost Uncertainty, Generalized Mean-Variance, and the Linear Complementarity Problem.American Journal of Agricultural Economics 61(1979):268275.
Paris, Q.Revenue and Cost Uncertainty, Generalized Mean-Variance and the Linear Complementarity Problem: Reply.American Journal of Agricultural Economics 61(1989):810812.
Pingali, P.L., Hossain, M., Pandey, S. and Price, L.L.. “Economics of Nutrient Management in Asian Rice Systems: Towards Increasing Knowledge Intensity.Field-Crops-Research 56:1,2(1998): 157176.
Polito, T.A. and Voss, R.D.. “Corn Yield Response to Varied Producer Controlled Factors and Weather in High Yield Environments.Journal of Producation Agriculture 4:1(1991):5157.
Rae, A.N.An Empirical Application and Evaluation of Discrete Stochastic Programming in Farm Management.American Journal of Agricultural Economics 53(1971):625–38.
Ritchie, J.T. and Otter, S.. “Description and Performance of CERES—Wheat: A User Oriented Wheat Yield Mode,” pp 159175. ARS Wheat Yield Project, Willis, W.O.. ed. Washington, D.C.:USDA ARS-38, June 1985.
Robinson, L.J. and Barry, P.J.. The Competitive Firm's Response to Risk. Macmillan, New York. 1987.
Rosenberg, S.E., Rotz, C.A., Black, J.R.. and Muhtar, H.. “Prediction of Suitable Days for Field Work.Agricultural Economics Staff Paper, Michigan State University. June 27–30, 1982. (82-56) 17 p.
Simalenga, T.E. and Have, H.. “Estimation of Soil Tillage Workdays in a Semi-Arid Area.Journal of Agricultural Engineering Research 51:2(1992):8189.
Szmedra, P.I., Wetzstei, M.E.. and Mc-Clendon, R.W.. “Partial Adoption of Divisible Technologies in Agriculture.Journal of Agricultural Economics Research 42:3(1990):2026.
Spurlock, S.R., Buehrin, N.W.. and Caillavet, D.F.. “Days suitable for Fieldwork in Mississippi.” Proc-Beltwide-Cotton-Conference. Memphis, Tennessee. 1995. v. 1 p. 383387.
Stapper, M. and Arkin, G.F.. “CORNF: A Dynamic Growth and Development Model for Maize (Zea mays L.).Texas Agricultural Experiment Station, Program and Model Documentation No. 80-2. December 1980.
Seeeney, D.W., Granad, G.V.. and Burton, R.O. Jr.Early and Traditionally Maturing Soybean Varieties Grown in Two Planting Systems.Journal of Production Agriculture 8:3(1995):373379.
Teague, P.W. and Lee, J.G.. “Risk Efficient Perennial Crop Selection: A MOTAD Approach to Citrus Production.Southern Journal of Agricultural Economics 20:2(1988):145152.
Traxler, G.Falck-Zepeda, J., Ortiz-Monasterio, J. I. and Sayre, K.. “Production Risk and the Evolution of Varietal Technology.American Journal of Agricultural Economics 77:1(1995):17.
Vandeveer, L.R., Paxton, K.W, and Lavergne, D.R.. “Irrigation and Potential Diversification Benefits in Humid Climates.Southern Journal of Agricultural Economics 21:2(1989):167174.
Weisensei, W.P. and Schoney, R.A.. “An Analysis of the Yield-Price Risk Associated with Specialty Crops.Western Journal of Agricultural Economics 14:2(1989):293299.
Whitson, R.E., Kay, R.D., Le Pori, W.A. and Rister, M.E.. “Machinery and Crop Selection with Weather Risk.Transactions American Society of Agricultural Engineering 24(1981):288-91, 295.
Wilkerson, G.G., Jones, J.W, Boote, K.T., Ingram, K.T.. and Mishoe, J.W.. “Modeling Soybean Growth for Management.Transactions American Society of Agricultural Engineering 26(1983):6373.
Williams, J.R., Gross, L.K., Claassen, M.M.. and Llewelyn, R.V.. “Economic Analysis of Tillage for Corn and Soybean Rotations with Government Commodity Programs.Journal of Production Agriculture 3:3(1990):308316.
Wilson, P.N. and Gunderson, C.E.. “Financial Risk in Cotton Production.Southern Journal of Agricultural Economics 17:2(1985): 199206.
Zacharias, T.P. and Grube, A.H.. “An Economic Evaluation of Weed Control Methods Used in Combination with Crop Rotation: A Stochastic Dominance Approach.North Central Journal of Agricultural Economics 6:1(1984):113120.


Production Practice Alternatives for Income and Suitable Field Day Risk Management

  • Carl R. Dillon (a1)


Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed