Impact of machinery ownership cost on risk efficiency and farm organization

• Published in: North Central journal of agricultural economics Vol. 13; no. 1
• Main Authors: Held, L.J. (University of Wyoming), Helmer, G.A
• Format: Journal Article
• Language: English
• Published: 01-01-1991
• Subjects: AMORTISSEMENT; AMORTIZACION; BETTERAVE SUCRIERE; CARGAS VARIABLES; CEBADA CERVECERA; CHARGE FIXE; CHARGE VARIABLE; COMPORTAMIENTO ECONOMICO; COMPORTEMENT ECONOMIQUE; COSTOS FIJOS; CULTIVOS; EFFICACITE; EFICACIA; ENSILADO; ENSILAGE (PRODUIT); EQUIPO; EXPLOITATION AGRICOLE; EXPLOTACIONES AGRARIAS; GESTION DE L'EXPLOITATION AGRICOLE; MAIS; MAIZ; MANEJO DE FINCAS; MATERIEL; METHODE D'OPTIMISATION; METODOS DE OPTIMIZACION; ORGE DE BRASSERIE; PLANTE DE CULTURE; PRISE DE DECISION; PROPIEDAD; PROPRIETE; REMOLACHA AZUCARERA; RENTA; REVENU; RIESGO; RISQUE; TEORIAS ECONOMICAS; THEORIE ECONOMIQUE; TOMA DE DECISIONES; WYOMING
• ISSN: 0191-9016; 2325-5978

Risk efficient crop enterprise combinations are developed on the basis of fixed machinery ownership costs (depreciation, interest, taxes, insurance, and housing) as well as variable operating costs in the optimizing process using a mixed-integer risk programming model. Selected solutions optimized with (versus without) machinery ownership costs tend to be less diversified with larger-sized crop acreage that capitalize on lower per unit fixed costs. In addition, they show lower income variability at comparable levels of income