Irrigation

Farm bioeconomic model th a desirable to manage a farm so that it achieves the maximum possible profit for the desired level of risk. This paper identifies risk-efficient cropping strategies that allocate land and water between crop enter-and cost-efficient compared to the alternative of conducting field enhanced through simulation modelling to represent longer time-frames (also see Hansen and Jones, 1996; Pandey and Hardaker, 1995). Hardaker (2000) observed that the stochasticity of the produc-tion environment and the resulting farm business risk were seldom considered in modelling studies. A decade later, the use of However, farmers, as with most people, are risk averse (Hardaker urns. The amount rsion. atives requ i (Anderso 1977, pp. 66–69), yet in practice a famer’s risk attitude may farm conditions change. For example, if the farm business healthy financial position the farmer may choose strategies ex-pected to yield high returns with relatively high risk, but if the farm business is in financial stress the farmer, or farm creditors, may dictate lower-yield, lower-risk strategies. This example illus-trates why it is difficult to elicit a decision maker’s utility functio