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The new risk environment in California agriculture
Author(s) -
Blank Steven C.
Publication year - 1995
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199503/04)11:2<155::aid-agr2720110208>3.0.co;2-n
Subject(s) - agriculture , portfolio , economics , production (economics) , agricultural productivity , agricultural economics , financial economics , microeconomics , geography , archaeology
A perceived increase in the risk environment of agricultural production in California is found to have significant economic implications. Using a portfolio model, hypotheses are derived concerning the reaction of individual producers to the shift in risk. Survey results indicate that agricultural producers are reacting in a manner consistent with a hypothesized „transition period” that could last several years before a new equilibrium is found. Unfortunately, the timing of this transition may be adding to the recessionary conditions within California's economy. © 1995 by John Wiley & Sons, Inc.