Hostname: page-component-7479d7b7d-c9gpj Total loading time: 0 Render date: 2024-07-10T23:02:16.688Z Has data issue: false hasContentIssue false
  • English
  • Français

Irrigation and Potential Diversification Benefits in Humid Climates

Published online by Cambridge University Press:  05 September 2016

Lonnie R. Vandeveer ,
Kenneth W. Paxton  and
David R. Lavergne
Lonnie R. Vandeveer
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University
Kenneth W. Paxton
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University
David R. Lavergne
Affiliation:
Department of Agricultural Economics and Agribusiness, Louisiana State University
Get access Rights & Permissions [Opens in a new window]

Abstract

Income variability and means for managing risk continue to receive much attention in farm management research. In this paper, irrigation is presented as a risk-management strategy that offers potential diversification benefits. Potential diversification opportunities largely result from a wider range of enterprise production activities. A portfolio analysis of dryland and irrigated farm scenarios indicates that income stabilizing and diversification effects of irrigation substantially modify the risk-return position of a typical farm in northeast Louisiana. Safety-first considerations along with Target MOT AD programming procedures also are used to evaluate the impact of irrigation on the farm's financial performance.

Keywords

irrigationincome variabilityriskdiversificationMOTADTarget MOTADsafety-first
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 21 , Issue 2 , December 1989 , pp. 167 - 174
Copyright
Copyright © Southern Agricultural Economics Association 1989

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Boggess, W.G. Lynne, G.D., Jones, J.W., and Swaney, D.P.. “Risk Return Assessment of Irrigation Decisions in Humid Regions.” So. J. Agr. Econ., 15, 1(1983): 135–143.Google Scholar
Boggess, W.G., and Amerling, C.B.. “A Bioeconomic Simulation Analysis of Irrigation Investment.” So. J. Agr. Econ., 15, 2(1983):85–91.Google Scholar
Boggess, W.G., Anaman, K.A., and Hanson, G.D.. “Importance, Causes, and Management Responses to Farm Risks: Evidence from Florida and Alabama.” So. J. Agr. Econ., 17, 2(1985):105–116.Google Scholar
Elton, E.J., and Gruber, M.J.. Modern Portfolio Theory and Investment Analysis. Second Edition. New York: John Wiley and Sons, 1984.Google Scholar
Hatch, L.U., Hardy, W.E. Jr, Rochester, E.W.. and Johnson, G.C.. “Optimal Irrigation Pivot Location on Irregularly Shaped Fields.” So. J. Agr. Econ., 17, 2(1985):163–170.Google Scholar
Hazell, P.B.R., and Norton, R.D.. Mathematical Programming for Economic Analysis in Agriculture. New York: Macmillan Publishing Company, 1986.Google Scholar
Laughlin, D.H.. “A Microcomputer Linear Programming Package: An Alternative to Mainframes.” So. J. Agr. Econ., 16, 1(1984):183–186.Google Scholar
Patrick, G.R., Wilson, P.N., Barry, P.J., Boggess, W.G., and Young, D.L... “Risk Perceptions and Management Responses: Producer Generated Hypothesis for Risk Modeling.” So. J. Agr. Econ., 17, 2(1985):231–238.Google Scholar
Paxton, K.W., Lavergne, D.R., Zacharias, T., and McManus, B.. Projected Costs and Returns for Cotton, Soybeans, Rice, Corn, Milo and Wheat in Northeast Louisiana, 1988. A.E.A. Information Series No. 60, Department of Agricultural Economics and Agribusiness, Louisiana Agricultural Experiment Station, LSU Agricultural Center, Baton Rouge, 1988.Google Scholar
Salassi, M.E., Musick, J.A., Heatherly, L.G., and Hamill, J.G.. An Economic Analysis of Soybean Yield Response to Irrigation of Mississippi River Delta Soils. Bulletin 928, Mississippi Agricultural and Forestry Experiment Station, Mississippi State, Mississippi, 1984.Google Scholar
Tauer, L.W.. “Target MOTAD.” Amer. J. Agr. Econ., 65, 3(1983):606–610.Google Scholar
Vandeveer, L.R., and Salassi, M.E.. “What Does Supplemental Irrigation Cost?” Louisiana Agriculture, 25, 3(1982):10–12.Google Scholar
Watts, M.J., Held, L.J., and Helmers, G.A.. “A Comparison of Target MOTAD to MOTAD.” Can. J. Agr. Econ., 32(1984):175–186.CrossRefGoogle Scholar
Zapata, H.O., Kelly, S.S., and Nelson, B.A.. Agricultural Statistics and Prices For Louisiana. A.E.A. Information Series No. 69, Department of Agricultural Economics and Agribusiness, Louisiana Agricultural Experiment Station, LSU Agricultural Center, Baton Rouge, 1988.Google Scholar