REAL OPTIONS ANALYSIS FOR INVESTMENT IN ORGANIC WHEAT AND BARLEY PRODUCTION IN SOUTH CENTRAL NORTH DAKOTA USING PRECISION AGRICULTURE TECHNOLOGY

Abstract

Real options theory is employed to measure the value of investing in organic wheat production using precision agriculture technology. Results reveal that an option to wait until market uncertainty is resolved is valuable. Information obtained via precision agriculture technology is also valuable to producers seeking organic certification.organic wheat production, real options theory, precision agriculture technology, Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies,