THE EFFECTS OF HOLDING NONFARM RELATED FINANCIAL ASSETS ON RISK-ADJUSTED FARM INCOME Report as inadecuate




THE EFFECTS OF HOLDING NONFARM RELATED FINANCIAL ASSETS ON RISK-ADJUSTED FARM INCOME - Download this document for free, or read online. Document in PDF available to download.

A discrete stochastic, programming model is formulated to study the gains from diversification when farming operations are augmented with off-farm financial assets that are not highly correlated with returns from farming. We extend past research by considering the dynamics of accumulating these financial assets and the farm's leverage and tenure position. Results show that farmers' income level and stability can be improved by including nonfarm financial assets in their portfolios.

Keywords: Agricultural finance ; Certainty equivalents ; Discrete stochastic programming ; Land investments ; Off-farm investments

Subject(s): Agricultural Finance

Issue Date: 1994-12

Publication Type: Journal Article

PURL Identifier: http://purl.umn.edu/15165 Published in: Journal of Agricultural and Applied Economics, Volume 26 Page range: 565-579

Total Pages: 15

Record appears in: Southern Agricultural Economics Association (SAEA) > Journal of Agricultural and Applied Economics





Author: Betubiza, Eustacius N. ; Leatham, David J.

Source: http://ageconsearch.umn.edu/record/15165?ln=en







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