2019
DOI: 10.1186/s40100-019-0127-7
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Farm/crop portfolio simulations under variable risk: a case study from Italy

Abstract: Important sources of risk in agriculture are yield and price fluctuations caused by unpredictable and uncontrollable events, inducing income volatility and adding considerable complexity to farmers' decisions. The literature suggests that these events could affect farmers' risk aversion in decision making and justify their preferences for risk minimizing and safety-first survival, rather than a profit maximization strategy. The aim of this study is to test this hypothesis by using a quadratic programming in li… Show more

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Cited by 13 publications
(7 citation statements)
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“…This theoretical approach has previously been operationalized through modelling the (Target MOTAD) i.e. the Minimization of Total Absolute Deviation (Rosa et al. , 2019).…”
Section: Methodsmentioning
confidence: 99%
“…This theoretical approach has previously been operationalized through modelling the (Target MOTAD) i.e. the Minimization of Total Absolute Deviation (Rosa et al. , 2019).…”
Section: Methodsmentioning
confidence: 99%
“…In addition, common strategies to deal with increasing uncertainty, such as overproduction (Fuss et al, 2015), land-use diversification (Rosa et al, 2019), or the diversion of the available labour to obtain off-farm income (Shannon & Motha, 2015) will influence land-use change processes and associated biodiversity. For instance, off-farm income may reduce crop diversification at the farm level (Ochoa et al, 2019).…”
Section: Directions To Modelling Developmentsmentioning
confidence: 99%
“…Agriculture is an activity with high level of risk, due to it is subjected to many unpredictable factors, both natural [1] such as climate, and market-based such as prices [2]. For this reason, farmers face the problem to decide about the agricultural process at the same time that something occurs, such as insect attack, long dry period, or price fall; however, when farmers have to react to these conditions, they still do not have an accurate prediction about yield and total production in their fields, therefore decisions do not necessarily will be the best.…”
Section: Short Communicationmentioning
confidence: 99%