A Dynamic Analysis of Management Strategies for Alberta Hog Producers

• Author(s) / Creator(s)

  • Schnitkey, Gary D.
  • Novak, Frank

• In this paper, we examine risk reductions possible by including off-farm assets with farm assets in a form growth context. We specify a dynamic investment model in which an individual can invest in hog finishing barns, stocks, and financial holdings. We solve this model for an Alberta hog finisher using alternative objective functions representing different types of risk preferences. Our results indicate that holding stocks is an effective means of reducing risks and increasing wealth.

• Date created

  1994

• Subjects / Keywords

  • Risk management
  • Hog producers
  • Canada, Alberta

• Type of Item

  Report

• DOI

  https://doi.org/10.7939/R3DR2PC23

• License

  Attribution-NonCommercial-NoDerivatives 3.0 International