DEVELOPING A SCALE FOR ASSESSING RISK ATTITUDES OF AGRICULTURAL DECISION MAKERS

This study adapts a methodology formulated in the social sciences to develop a scale for measuring an economic agentÂ’s attitude toward risk. The scale assesses risk attitudes by eliciting farmersÂ’ opinions towards risk management tools using a Likert procedure. The methodology validates the scale with a scientific risk attitude measure and compares the scale to the farmersÂ’ self-assessment of their risk attitudes. The resulting scale methodology could be administered to people without the need for personal interviews. The subjects for this study were Midwestern farmers, but the methodology can be applied to any sector of the agricultural industry.Risk and Uncertainty,

ASSESSING FARMERS' ATTITUDES TOWARD RISK USING THE "CLOSING-IN" METHOD

The 1996 Farm Bill and low commodity prices have regenerated interest in the impact of risk and farmers' risk attitudes on production agriculture. Previous research has used expected utility theory (EUT) and direct elicitation of utility functions (DEU) for eliciting risk attitudes. To overcome the criticism of EUT and DEU, a recently developed technique called the "closing in" method is adapted for eliciting farmers' risk attitudes. This method is applied to Illinois farmers by using a computerized decision procedure, and is validated by comparing the results to the farmers' self-assessment of their risk attitudes and score to a risk attitudinal scale.Risk and Uncertainty,

A Multivariate Evaluation of Ex-ante Risks Associated with Fed Cattle Production

The purpose of this study is to evaluate the risks faced by fed cattle producers. With the development of livestock insurance programs as part of the Agricultural Risk Protection Act of 2000, a thorough investigation into the probabilistic measures of individual risk factors is needed. This research jointly models cattle production yield risk factors, using a multivariate dynamic regression model. A multivariate framework is necessary to characterize yield risk in terms of four yield factors (dry matter feed conversion, averaged daily gain, mortality, and veterinary costs), which are highly correlated. Additionally, a conditional Tobit model is used to handle censored yield variables (e.g., mortality). The proposed econometric model estimates parameters that influence the mean and variance of each production yield factor, as well as the covariance between variables. Following the model fitting using a maximum likelihood approach, simulation methods allow for profits, revenue, and gross margins to be evaluated given different assumptions concerning volatility among other shocks. The profit function is composed of random draws, based on conditioning variables, as well as parameter estimates. Shocks to variability, yield factors, or prices allow for a visual representation of the vulnerability of cattle feeder profits to these shocks.Livestock Production/Industries,

Perception of Decoupled Government Payments: Evidence from a National Survey

Based on results from a national survey, this study examines how farm households say that they used (or would use) government transfers distributed in the form of direct fixed payments. In addition, the study examines what factors best explain farm household decisions regarding how fixed payment proceeds are used.Agricultural and Food Policy,

Palliative care: promoting general practice participation

Specialist palliative care services and services involved in the pre-palliative phase of a patient’s disease must accept GPs as an integral part of the care tea

Quality Risk and Profitability in Cattle Production: A Multivariate Approach

This study evaluates quality, production, and price risk within the context of overall profit variability in fed cattle production. The approach used offers a flexible way to estimate a large system of equations with more than three jointly related censored outcomes. Trade-offs between quality and yield grade levels and production measures, such as average daily gain and feeding efficiency, are evaluated. Simulation procedures are used to assess the impact of quality risk on overall profit variability. Results make an important contribution to existing research by explaining why price signals through grid quality grade premiums may not generate intended producer responses.censoring, copula, fed cattle, grid pricing, multivariate, quality risk, Livestock Production/Industries,

ECONOMIC RISK AND THE STRUCTURAL CHARACTERISTICS OF FARM BUSINESSES

Using longitudinal panel farm-level data, this study finds that income variability may be materially influenced by farm size. Econometric results suggest that policy analyses and other considerations of the distributional effects of, and response to, income variability for commercial scale family farms may concentrate on farm size and other structural variables.risk, income variability, farm size, financial structure, Farm Management, Industrial Organization,

Probabilistic Models of Yield, Price, and Revenue Risks for Fed Cattle Production

Livestock Production/Industries,

Development of design criteria for an electrochemical water reclamation system

Electrochemical system design to recover water from human urin