Hostname: page-component-669899f699-qzcqf Total loading time: 0 Render date: 2025-04-28T03:08:06.203Z Has data issue: false hasContentIssue false
  • English
  • Français

Financial Risk in Cotton Production

Published online by Cambridge University Press:  28 April 2015

Paul N. Wilson  and
Carl E. Gundersen
Paul N. Wilson
Affiliation:
Department of Agricultural Economics, University of Arizona
Carl E. Gundersen
Affiliation:
Department of Agricultural Economics, University of Arizona
Get access Rights & Permissions [Opens in a new window]

Abstract

Risk analysis continues to emphasize price and yield variability as the principal components of the decisionmaker's risk environment. This research demonstrates the relative importance of financial risk for a representative cotton farm in Arizona. For highly leveraged operations, financial risk may account for 70 percent of the total risk faced by the producer. Implications for future risk analysis are discussed in light of these findings.

Keywords

financial riskcottonagricultural finance
Type
Notes
Information
Journal of Agricultural and Applied Economics , Volume 17 , Issue 2 , December 1985 , pp. 199 - 206
Copyright
Copyright © Southern Agricultural Economics Association 1985

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

Arizona Crop and Livestock Reporting Service. Arizona Agricultural Statistics, SRS/USDA, Phoenix, various years.Google Scholar
Barry, P.J. and Fraser, D. R.. “Risk Management in Primary Agricultural Production: Methods, Distribution, Rewards, and Structural Implications.” Amer. J. Agr. Econ., 58(1976):286–295.CrossRefGoogle Scholar
Boehlje, M. and Eidman, V.. “Financial Stress in Agriculture: Implications for Producers.” Amer. J. Agr. Econ., 65(1983):937–944.CrossRefGoogle Scholar
Eidman, V. R. “Cash Flow Price Risk, and Production Uncertainty Considerations.” In Modeling Farm Decisions for Policy Analysis, ed. Baum, K. H., and Schertz, L., Westview Press; Boulder, Colorado, 1983, pp. 159–180.Google Scholar
Fisher, B. S. and Tanner, C.. “The Formulation of Price Expectations: An Empirical Test of Theoretical Models.” Amer. J. Agr. Econ., 60(1978):245–248.CrossRefGoogle Scholar
Gabriel, S. C. and Baker, C. B.. “Concepts of Business and Financial Risk.” Amer. J. Agr. Econ., 62(1980):560–564.CrossRefGoogle Scholar
Gardner, B. L. “Current Economic Issues in U.S. Agriculture: Implications for Farm Policy Choices in 1985.” In U.S. Agricultural Policy:1985 and Beyond, ed. Hillman, J. S., Department of Agricultural Economics, University of Arizona, 1984.Google Scholar
Hanson, G. D. and Thompson, J. L.. “A Simulation Study of Maximum Feasible Farm Debt Burdens by Farm Type.” Amer. J. Agr. Econ., 62(1980):727–733.CrossRefGoogle Scholar
Hatch, T. C, Gustafson, C., Baum, K., and Harrington, D.. “A Typical Farm Series: Development and Application to a Mississippi Delta Farm.” So. J. Agr. Econ., 14,2(1982):31–36.Google Scholar
Hathorn, S.Arizona Field Crop Budget: Pinal County, Cooperative Extension Service, College of Agriculture, University of Arizona, Tucson, 1975-1982.Google Scholar
Held, L. J. and Zink, R. A.. “Farm Enterprise Choice: Risk-Return Tradeoffs for Cash-Crop Versus Crop-Livestock Systems.” No. Central J. Agr. Econ., 4(1982):11–19.Google Scholar
Lin, W., Dean, G. W., and Moore, C. V.. “An Empirical Test of Utility vs. Profit Maximization in Agricultural Production.” Amer. J. Agr. Econ., 56(1974):497–508.CrossRefGoogle Scholar
Melichar, E. “Financial Perspective on Agriculture.” Federal Reserve Bulletin, January (1984):1–13.Google Scholar
Naylor, T. H., Balintfy, J. L., Burdick, D. S., and Chu, K.. Computer Simulation Techniques, John Wiley and Sons, New York, 1966.Google Scholar
Patrick, G. F. “Producers' Attitudes, Perceptions and Management Responses to Variability.” In Risk Analysis for Agricultural Production Firms: Concepts, Information Requirements, and Policy Issues, Department of Agricultural Economics, University of Illinois, Urbana-Champaign, 1984.Google Scholar
Sanint, L. R. and Barry, P. J.. “A Programming Analysis of Farmers' Credit Risks.” Amer. J. Agr. Econ., 65(1983):321–325.CrossRefGoogle Scholar
Shepard, L. E. and Collins, R. C.. “Why Do Farmers Fail? Farm Bankruptcies 1910-1978.” Amer. J. Agr. Econ., 64(1982):609–615.CrossRefGoogle Scholar
Tweeten, L. “Diagnosing and Treating Farm Problems.” In U.S. Agricultural Policy: 1985 and Beyond, ed. Hillman, J. S., Department of Agricultural Economics, University of Arizona, 1984.Google Scholar
United States Department of Agriculture (USDA). “Economic Indicators of the Farm Sector: Income and Balance Sheet Statistics, 1982.” ECIFS2-2, Economic Research Service, Washington, D.C., 1983.Google Scholar