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de Mey, Yann; Wauters, Erwin; van Winsen, Frankwin; Vancauteren, Mark; Van Passel, Steven; Lauwers, Ludwig H.. |
Modeling the farm level impact of risk management programs, policies and instruments is traditionally been done on a farm-level basis. Hence, farm simulation models typically use the behavioural assumption of profit or utility maximization is risk aversion taken into account. However, abundant – albeit indirect – evidence from different literature sources suggest that minimization of household risk – being the chance of falling below a certain threshold level of household cash flow – might be more realistic behavioural assumption. In this paper, we present concepts of operational, financial, total farm and household risk. Further, using a stochastic simulation model on two typical Belgian dairy farms, we illustrate possible farmers responses in the... |
Tipo: Presentation |
Palavras-chave: Household risk; Typical dairy farms; Stochastic simulation; Household buffering capacity; Risk and Uncertainty. |
Ano: 2012 |
URL: http://purl.umn.edu/122470 |
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Wauters, Erwin; De Cock, Lieve; Wit, Jan de; Lauwers, Ludwig H.. |
Risk considerations have become increasingly important in nowadays agriculture, due to a variety of reasons. Surprisingly, the practice of formalized risk management is not widespread despite the huge amount of scientific literature on this topic. This discrepancy between risk science and extension is described by many authors. This paper presents a communicative method, rooted in financial economics, to evaluate risk-return profiles in a way that is communicative for individual farmers. The method is derived from the modern portfolio theory, in which individual assets are implicitly compared to the risk-return trade-off of that asset with the highest Sharpe ratio. We use this idea to compare individual risk-return profiles to a particular benchmark. The... |
Tipo: Conference Paper or Presentation |
Palavras-chave: Risk and Uncertainty. |
Ano: 2011 |
URL: http://purl.umn.edu/115737 |
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