Date of Graduation
Master of Science in Agricultural Economics (MS)
Agricultural Economics and Agribusiness
Lanier L. Nalley
Bruce L. Ahrendsen
Second Committee Member
Social sciences; Agricultural risk; Cultivar; Portfolio theory; Soybeans
The purpose of this study was to estimate the effect of utilizing portfolio theory on producers' profitability in the production of soybeans in three test locations - Keiser, Marianna and Rohwer - in Arkansas. The study used empirical yield data, their variances and covariances over a nine year period (2002-2010) in selecting a portfolio of soybean varieties that maintains or increases yield while minimizing the yield risk. Furthermore, carbon emissions associated with soybean production was estimated by modeling the effect of a potential carbon tax as well as the potential benefit of carbon offset payments resulting from carbon sequestration. The results showed that there are significant advantages in planting a portfolio of soybean varieties that can enhance profits and decrease yield variability for soybean producers in Arkansas. In addition, by using variance and covariance across all soybean varieties in a given location, the risk minimizing combination of varieties could be obtained.
Onyechere, Osemenkhian Cynthia, "Enhancing Soybean Profitability Using Portfolio Theory" (2011). Theses and Dissertations. 175.