Analysis of Selected Marketing Strategies: A Whole-Farm Simulation Approach
Document Type
Article
Journal/Book Title/Conference
American Journal of Agricultural Economics
Volume
67
Publication Date
1985
First Page
813
Last Page
820
Abstract
A detailed whole-farm simulation model capable of simulating stochastic daily cash and futures prices was used to evaluate alternative marketing strategies for a Texas High Plains cotton farm over a ten-year planning horizon. Stochastic dominance with respect to a function was used to rank the alternative marketing strategies for risk-averse and risk-neutral producers. Results indicated that risk-averse producers would prefer hedge and hold marketing strategies over discretionary hedging strategies. Sellers' call contracting was not highly preferred by either risk-neutral or risk-averse producers.
Recommended Citation
Bailey, D., and J.W. Richardson. Analysis of Selected Marketing Strategies: A Whole-Farm Simulation Approach. American Journal of Agricultural Economics 67(1985):813-20.