STOCHASTIC DYNAMIC OPTIMIZATION AND RANGELAND INVESTMENT DECISIONS

One of the most uncertain resources for a western beef cattle ranch is the availability of reliable spring forage. The impact on ranch equity position and income variability of investments in crested wheatgrass seedings designed to stabilize spring forage supplies is examined. Expected ending net worth under stochastic forage production and cattle prices is maximized subject to secondary safety-first objectives. Seedings increase expected ending net worth and increase annual net ranch incomes after plant establishment.


Issue Date:
1990-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32071
Published in:
Western Journal of Agricultural Economics, Volume 15, Number 2
Page range:
186-195
Total Pages:
10




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

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