Incorporating economic risk aversion in agroforestry planning

✍ Scribed by Robert J. Lilieholm; Laurence H. Reeves

• Publisher: Springer
• Year: 1991
• Tongue: English
• Weight: 406 KB
• Volume: 13
• Category: Article
• ISSN: 0167-4366
• DOI: 10.1007/bf00129619

✦ Synopsis

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.