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Efficiency of risk reduction on Slovenian livestock farms : whole-farm planning approach
Žgajnar, Jaka, 1982- ; Kavčič, Stane, 1966-
This paper deals with whole farm planning problem under stochastic conditions caused by production and price risk. Exposition to risk and efficiency of risk reduction was studied on five liveskock ...farms in Slovenia. For this purpose linear and quadratic risk programming modeling paradigm has been applied. Linear program assumes that farmer maximizes expected gross margin subject to a set of constraints related to farm's limited resources, while quadratic risk programming is based on E-V efficient set. Efficiency of diversification strategies for all farms has been estimated with risk gradient value.
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