IRRIGATION AND POTENTIAL DIVERSIFICATION BENEFITS IN HUMID CLIMATES

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 MOTAD programming procedures also are used to evaluate the impact of irrigation on the farm's financial performance.


Subject(s):
Issue Date:
1989-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/30106
Published in:
Southern Journal of Agricultural Economics, Volume 21, Number 2
Page range:
167-174
Total Pages:
8




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

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