Regional Crop Enterprise and Farm Program Selection on Whole Farm Net Returns Under Risk

This economic analysis incorporates stochastic efficiency with respect to a function (SERF) to rank alternative crop selection and farm program alternatives on representative farms in central and northeastern regions of Louisiana. This farm-level returns model provides a cardinal measure of a producer’s conviction for crop choice and farm program preferences among alternative enterprise and farm program choice across varying risk aversion levels. By interpreting the differences between certainty equivalent (CE) values as risk premiums, representative farm analysis is applied to document effectiveness that enterprise selection and farm program choice have on mitigating net return risk among corn, cotton, rice, and soybean enterprises on leading Louisiana farms.