Ranking Specialty Crop Profitability: Iterative Stochastic Dominance

This research used stochastic dominance with respect to a function to evaluate producer preference for cropping systems under uncertainty. Six alternative cropping systems were compared for seven different crops. Many times a producer is familiar a developing market opportunity for a specialty crop and the producer has to make a production decision based on yield uncertainty. This research analyzed by how much alternative crop and bio-energy crop yields would need to change to make a producer indifferent between the most preferred (dominant) cropping system and an alternative cropping system. For the current study, the stochastic dominance results indicate that the change in yield necessary is sufficiently large enough to keep producers from accepting the risk of engaging in alternative crop or bio-energy crop production. The paper concludes with study limitations, which the reader is encouraged to review.


Issue Date:
May 28 2014
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/170663
Total Pages:
16
Series Statement:
P5360




 Record created 2017-04-01, last modified 2017-10-22

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