A STOCHASTIC DOMINANCE ANALYSIS OF ALTERNATIVE MARKETING STRATEGIES FOR MIXED CROP FARMS IN NORTH FLORIDA

Cumulative probability distributions of income for management scenarios involving four pre-harvest marketing strategies are subjected to stochastic dominance analysis to determine risk-efficient sets of strategies for different groups of farmers in North Florida. Results indicate that farmers should behave differently in their choice of marketing strategies according to their risk attitudes. Highly risk-averse farmers should prefer some forward contracting while low risk-averse and risk loving farmers should prefer cash sales at harvest. Use of the futures markets leads to both higher income and greater risk than forward contracting but lower income and risk than cash sales