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Título: A STRATEGIC AGRICULTURAL PRODUCTION MODEL WITH RISK AND RETURN CONSIDERATIONS
Autores: Aull-Hyde, Rhonda L.
Tadesse, Solomon
Fecha: 2002-10-10
2007-03-07
2002-10-10
2007-03-07
1994-04
Publicador: AgEcon
Fuente:
Tipo: Journal Article
Tema: Production Economics
Descripción: Decision support systems are generally geared to short-term tactical decision making. As an alternative, this paper develops a mathematical programming model to evaluate long-term strategic alternatives in the context of farm-level agricultural production where a broiler farm considers long-term implications of diversification into commercial aquaculture. The model considers a ten-year strategic planning horizon, incorporates financial risk and return considerations, and accommodates capacity variations. Results indicate that a diversification strategy significantly increases farm profitability over a strategic planning horizon while simultaneously maintaining financial risk below a predetermined tolerance level and return on investment above a predetermined level.
Idioma: English
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