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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
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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

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