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RISK IN AGRICULTURE AS IMPEDIMENT TO RURAL LENDING - THE CASE OF NORTH-WESTERN KAZAKHSTAN AgEcon
Petrick, Martin; Ditges, C. Markus.
On the basis of portfolio selection theory, this paper finds that whole-farm risk must be regarded as a major reason for the low level of credit flow to agriculture in North-western Kazakhstan. A quadratic programming model was used in order (a) to demonstrate the comparatively high overall risk exposition of a typical farm, (b) to show that an inflow of working capital could contribute to risk reduction, and (c) to illustrate short-term risk management strategies. Although there may be a role for the government in reducing risk exposition of agriculture in its current form, natural and economic constraints suggest to pave the way for structural reforms that reduce the importance of agriculture in the rural economy. .
Tipo: Working or Discussion Paper Palavras-chave: Agricultural credit; Kazakhstan; Portfolio selection theory; Risk programming; Agricultural Finance; Q14; G11; C61.
Ano: 2000 URL: http://purl.umn.edu/14939
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RISK AND SITE FACTORS AFFECTING POTENTIAL NITROGEN DELIVERY IN THE VIRGINIA COASTAL PLAIN AgEcon
Peng, Wei; Bosch, Darrell J..
The effects of cropland slope, distance to surface water, farmers' risk attitudes, and farmers' nitrogen (N) fertilizer applications on potential N delivery to streams and costs of reducing N delivery were evaluated for a representative Virginia peanut-cotton farm. Target MOTAD and generalized stochastic dominance were used to select preferred plans for different levels of risk aversion. Costs of reducing N delivery were lower on farms where fields were located close to surface water, where N was overapplied relative to extension fertilizer recommendations, and where the operator was risk averse. Cropland slope had less effect on cost of reducing N delivery relative to other factors.
Tipo: Journal Article Palavras-chave: Cost; Nonpoint source pollution; Risk programming; Simulation; Stochastic dominance; Targeting; Environmental Economics and Policy.
Ano: 2001 URL: http://purl.umn.edu/15287
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Risk programming and sparse data: how to get more reliable results AgEcon
Hardaker, J. Brian; Lien, Gudbrand D.; Van Asseldonk, Marcel A.P.M.; Richardson, James W.; Hegrenes, Agnar.
Because relevant historical data for farms are inevitably sparse, most risk programming studies rely on few observations. We discuss how to use available information to derive an appropriate multivariate distribution function that can be sampled for a more complete representation of the possible risks in riskbased models. For the particular example of a Norwegian mixed livestock and crop farm, the solution is shown to be unstable with few states, although the cost of picking a sub-optimal plan declines with increases in number of states by Latin Hypercube sampling.
Tipo: Conference Paper or Presentation Palavras-chave: Risk programming; States of nature; Sparse data; Risk and Uncertainty.
Ano: 2008 URL: http://purl.umn.edu/44051
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