Wheat Variety Selection to Maximize Returns and Minimize Risk: An Application of Portfolio Theory

Abstract

This research shows that a portfolio of wheat varieties could enhance profitability and reduce risk over the selection of a single variety for Kansas wheat producers. Many Kansas wheat farmers select varieties solely based on published average yields. This study uses portfolio theory from business investment analysis to find the optimal, yield-maximizing and risk-minimizing combination of wheat varieties in Kansas.portfolio theory, wheat variety selection, Agribusiness, Agricultural and Food Policy, Crop Production/Industries, Industrial Organization, Production Economics, Risk and Uncertainty, Q12, Q16,