Date of Award

2016

Publisher

North Dakota State University

Document Type

Thesis

Degree Awarded

Master of Science (MS)

Program

Agribusiness and Applied Economics

Department

Agribusiness and Applied Economics

College

Agriculture, Food Systems and Natural Resources

Faculty Advisor

Olson, Frayne

Description

The market for barley has shifted from a demand for exports and livestock feed, to a demand for human food and alcohol production. Due to the crop qualities required for malting in the alcohol industry, barley is perceived to be a more financially risky crop to grow in comparison to other crops. Monte Carlo simulation was used to estimate the distributions of net return to labor and management for barley, hard red spring wheat, corn, soybean, and canola in the primary, North Central, and transitional, Central, crop reporting districts of North Dakota. Stochastic efficiency with respect to a function was used to rank the distributions based on a farm manager’s risk preferences. Results indicate that barley is not as risky to grow as farm managers perceive. However, soybeans were the dominant crop. Corn is dominant crop when a decision maker is risk neutral, but quickly diminishes as risk aversion increases.

Rights

NDSU policy 190.6.2

Rights Link

https://www.ndsu.edu/fileadmin/policy/190.pdf

Author ORCID Identifier

0000-0001-9917-6855

Handle Identifier

https://hdl.handle.net/10365/28041

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