Abstract
The ability to use a knowledge of past market price fluctuations to reduce the risk of future financial returns is explored in the context of planning an agroforestry system with a cash crop component. It is demonstrated that if past crop price behavior is indicative of future price behavior, planting crops with stable and/or negatively correlated net revenues can reduce the variance of future net revenues and hence decrease the financial risks of agroforestry systems.
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This research was supported by the Utah Agricultural Experiment Station, Utah State University, Logan, Utah 84322-4845. Approved as journal paper no 3903.
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Lilieholm, R.J., Reeves, L.H. Incorporating economic risk aversion in agroforestry planning. Agroforest Syst 13, 63–71 (1991). https://doi.org/10.1007/BF00129619
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DOI: https://doi.org/10.1007/BF00129619