Hostname: page-component-848d4c4894-mwx4w Total loading time: 0 Render date: 2024-06-17T07:45:58.173Z Has data issue: false hasContentIssue false
  • English
  • Français

Influence of Market Diversification on Farm Income Variability of Soybean Producers

Published online by Cambridge University Press:  28 April 2015

B. R. Eddleman  and
J. E. Moya-Rodriguez
B. R. Eddleman
Affiliation:
Department of Agricultural Economics, Mississippi State University
J. E. Moya-Rodriguez
Affiliation:
Department of Agricultural Economics, Mississippi State University
Get access Rights & Permissions [Opens in a new window]

Extract

Many decisions made by farm producers are based on expectations. The process of formulating and incorporating these expectations into decision making is difficult when high variability occurs in product prices, crop yields, production costs, or other factors affecting net income. Farm producers may be influenced by a number of goals in selecting combinations of crops to produce and marketing outlets for the crops. Two goals generally held to be important to farm decision makers are maximization of net income and net income stability. Given the price, yield, and cost of production variability characteristics of a farm enterprise and these two goals of farm decision makers, a fundamental problem is to determine what combination of alternative marketing actions can best satisfy the two objectives. A systematic examination of the relationship between the level of net income and net income variability for combinations of marketing alternatives would aid farmers in deciding on marketing actions to attain these goals.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 11 , Issue 1 , July 1979 , pp. 101 - 105
Copyright
Copyright © Southern Agricultural Economics Association 1979

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

[1] Adeyemo, Remi, et al. “On Farm Soybean Storage: Cost and Potential Returns”, Mississippi Agricultural and Forestry Experiment Station Bulletin 863, December 1977.Google Scholar
[2] Barry, Peter J. and Willmann, David R., “A Risk-Programming Analysis of Forward Contracting with Credit Constraints”, American Journal of Agricultural Economics, Volume 58, 1976, pp. 62–70.CrossRefGoogle Scholar
[3] Cooke, Fred T. Jr., et al. Crop Budgets and Planning Data for Major Farm Enterprises in the Mississippi and Louisiana Delta, 1975, Mississippi Agricultural and Forestry Experiment Station DAE Report No. 484, June 1975.Google Scholar
[4] Eddleman, B. R. and Parvin, D. W. Jr. “Crop Budgets, Cost of Production, Investment, Yield and Price Variability for Soybeans,” AEC Staff Paper No. 25, Department of Agricultural Economics, Mississippi State University, May 1977.Google Scholar
[5] Kuester, J. L. and Mize, J. H.. Optimization Techniques With Fortran. New York: McGraw-Hill Book Company, 1973.Google Scholar
[6] Mississippi Crop and Livestock Reporting Service. Mississippi Agricultural Statistics, 1973-76, Supplement No. 11, USDA Statistical Reporting Service, November 1977.Google Scholar
[7] Parvin, David W. Jr. et al. Cost of Production Estimates for Major Crops, Mississippi Delta, 1976, Mississippi Agricultural and Forestry Experiment Station Bulletin 843, February 1976.Google Scholar
[8] Simmons, Donald M. Nonlinear Programming for Operations Research. Englewood Cliffs, New Jersey: Prentice-Hall, Inc., 1975.Google Scholar