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RISK AND FARM SIZE IN THE PASTORAL ZONE
Author(s) -
Anderson Jock R.
Publication year - 1972
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1972.tb00086.x
Subject(s) - rate of return , wool , variable (mathematics) , net income , variables , economics , agricultural economics , geography , demographic economics , agricultural science , statistics , mathematics , environmental science , mathematical analysis , archaeology , finance
Variable performance over time is an important feature of wool growing in the eastern pastoral zone of Australia. An analysis of time series data from the Australian Sheep Industry Survey indicates that standard deviation of net farm income is related more or less linearly to size of firm and increases with size at about the same rate as does average net income. A tentative conclusion is drawn that large farms have had a slight tendency to experience less variable rates of return than small farms. However, it is found that farms that have experienced relatively variable returns have tended to enjoy average rates of return above those of other farms of similar size.