SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS JULY, 1983 RISK-RETURN ASSESSMENT OF IRRIGATION DECISIONS IN HUMID REGIONS

firm level has always been volatile, but particularly so in recent years. Product prices have seen wide fluctua- Amir et al. provides some insight into the overall di-tions, due in part to a reduced emphasis on farm-price lemma faced by the researcher interested in defining support programs and more reliance on world markets. "optimal " irrigation strategies in their statement that, Input prices, especially those that are energy related "every farmer has his own experience and preferences (fertilizers, chemicals, fuels), have also increased in which can hardly be formulated in mathematical terms" an erratic manner in recent years. Changes in the basic (p. 1413). This perspective may be correct, although institutional setting, including farm-price support pol- some inroads have been made with utility analysis icy, water supply regulation, environmental controls, (English and Orlob). Amir et al. suggest the develop-and trade policy have all contributed to variability. As ment of interactive, computer scheduling models en-a result, it has become even more important to better abling the user to execute a "decisive role in directing understand the nature of risk and uncertainty-reducing the search (for a strategy) according to his prefer-processes, such as irrigation. ences, " which relieves the researcher from specifying There are many sources of variability affecting ir- a well-defined objective function. A case can be made rigation management. The purpose of this paper is to for this view; however, there are situations wher