Andrew Stevens, University of Wisconsin, Madison
Crop Rotations and Risk Management in Mississippi Delta Agriculture
Date and Location
Thursday, November 5, 2020, 4:00 PM - 5:00 PM
Abstract
*Our workshop will join the seminar of the Agricultural & Natural Resource Seminar at ARE, UC Berkeley.
Abstract: Crop rotations have important agronomic effects on both the mean and variance of expected crop yields. An effective crop rotation scheme can reduce year-to-year pest pressure, replenish soil nutrients, and increase plant vitality. However, choosing crop rotations to maximize agronomic benefits may not maximize economic benefits. Additionally, farmers often diversify their crop mix to manage both yield risk and price risk. In this research, we explore how crop rotations and cropping history affect farmers’ risk management decisions. Specifically, we ask: how does knowledge of a field’s crop history alter a farmer’s optimal cropping portfolio with respect to managing risk? To answer this question, we combine experimental data from university test plots with modern portfolio theory to generate efficient frontiers of crop choice under different hypothetical cropping histories. Our results quantify the risk-reward trade-off that farmers face and highlight the importance of dynamic rotation effects in the crop choice decision.
Subscribe to Upcoming Seminars
Click here to receive weekly notice of all upcoming seminars via email.
Individual seminar and workshop announcements are circulated via separate mailing lists. To subscribe, send an email to the relevant list:
- Click here to subscribe to the Departmental Seminars.
- Click here to subscribe to the Agricultural Economics Workshop.
- Click here to subscribe to the Development Workshop.
- Click here to subscribe to the Econometrics Seminars.
- Click here to subscribe to the Environmental and Resource Economics Workshop and the Environmental and Energy Economics Workshop.
Contact Us
2116 Social Sciences and HumanitiesUniversity of California, Davis
One Shields Avenue
Davis, CA 95616
Main Office: 530-752-1515
Student Advising Services: 530-754-9536
DeLoach Conference Room: 530-752-2916
Main Conference Room: 530-754-1850