Estimation of Risk Efficient Farm Structures along the Kızılırmak River in North Central Anatolia: An Application of Minimization of the Absolute Deviation

Vedat CEYHAN*; H. Avni CİNEMRE

Article Details

Estimation of Risk Efficient Farm Structures along the Kızılırmak River in North Central Anatolia: An Application of Minimization of the Absolute Deviation

Authors:

Vedat CEYHAN* | H. Avni CİNEMRE

Publisher:

TUBITAK

Journal:

Turkish Journal of Agriculture and Forestry 2004 Vol.28 Issue 2, pp.131-140

Document Type:

Article

Publication Date:

1/2004

Document Language:

Turkish

Document ID (Org No.):

2000809232

Frequency:

Bimonthly

eISSN:

1303-6173

pISSN:

1300-011X

Keywords:

Abstract:

 

A risk-programming model was developed to evaluate the tradeoffs between risk and expected returns for farms along the Kızılırmak River in North Central Anatolia. Risk efficient farm structures were derived for representative farms by using minimization of the absolute deviation procedures, which permit the estimation of a farm's risk-return frontier. Research results reveal that farm plans are sensitive to the risk criteria in the research area. Rice and maize are the most high-risk activities, followed by lettuce and soybean. Wheat, sugar beet and dairy activities have a more stabilizing effect on farm income compared to others. Medium size and large farms prefer more high risk and cash crops such as rice and soybean compared to small farms. The results also suggest that the total net farm return increases for all sizes as the risk increases and that farmers tend to choose more stable farm plans in the research area.

 

A risk-programming model was developed to evaluate the tradeoffs between risk and expected returns for farms along the Kızılırmak River in North Central Anatolia. Risk efficient farm structures were derived for representative farms by using minimization of the absolute deviation procedures, which permit the estimation of a farm's risk-return frontier. Research results reveal that farm plans are sensitive to the risk criteria in the research area. Rice and maize are the most high-risk activities, followed by lettuce and soybean. Wheat, sugar beet and dairy activities have a more stabilizing effect on farm income compared to others. Medium size and large farms prefer more high risk and cash crops such as rice and soybean compared to small farms. The results also suggest that the total net farm return increases for all sizes as the risk increases and that farmers tend to choose more stable farm plans in the research area.

Article Details

Estimation of Risk Efficient Farm Structures along the Kızılırmak River in North Central Anatolia: An Application of Minimization of the Absolute Deviation

Authors:

Vedat CEYHAN* | H. Avni CİNEMRE

Publisher:

TUBITAK

Journal:

Turkish Journal of Agriculture and Forestry 2004 Vol.28 Issue 2, pp.131-140

Document Type:

Article

Publication Date:

1/2004

Document Language:

Turkish

Document ID (Org No.):

2000809232

Frequency:

Bimonthly

eISSN:

1303-6173

pISSN:

1300-011X

Decision model

profit maximization

resource allocation

risk

MOTAD

Issues

Article Details

Estimation of Risk Efficient Farm Structures along the Kızılırmak River in North Central Anatolia: An Application of Minimization of the Absolute Deviation

Authors: Vedat CEYHAN* | H. Avni CİNEMRE

Publisher: TUBITAK

Journal: Turkish Journal of Agriculture and Forestry 2004 Vol.28 Issue 2, pp.131-140

Document Type: Article

Publication Date: 1/2004

Document Language: Turkish

Document ID (Org No.): 2000809232

Frequency: Bimonthly

eISSN: 1303-6173

pISSN: 1300-011X

Decision model

profit maximization

resource allocation

risk

MOTAD

Issues

Authors:

Vedat CEYHAN* | H. Avni CİNEMRE

Publisher:

TUBITAK

Journal:

Turkish Journal of Agriculture and Forestry 2004 Vol.28 Issue 2, pp.131-140

Document Type:

Article

Publication Date:

1/2004

Document Language:

Turkish

Document ID (Org No.):

2000809232

Frequency:

Bimonthly

eISSN:

1303-6173

pISSN:

1300-011X