Research@Lincoln
    • Login
     
    View Item 
    •   Research@Lincoln Home
    • Faculty of Agribusiness and Commerce
    • Department of Financial and Business Systems
    • View Item
    •   Research@Lincoln Home
    • Faculty of Agribusiness and Commerce
    • Department of Financial and Business Systems
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Should farmers invest in financial assets as a risk management strategy? Some evidence from New Zealand

    Nartea, Gilbert; Webster, J.; Pellegrino, J.
    Abstract
    Off-farm investment as a risk management strategy is not widespread among New Zealand sheep and beef farmers. This study explores the potential for risk reduction by the diversification of farm asset portfolios to include financial investments such as industrial equities and government bonds of various types. Results show that the negative correlations between long-run rates of return on farm assets and financial investments could result in a significant reduction of risk if equities and bonds were included in farm investment portfolios. However, when combined with information about attitudes to risks, it does not seem likely that farmers would adopt such strategies purely in order to stabilise incomes. Deregulation of the New Zealand economy in the mid 1980's had little impact on farmers' optimal allocation of their assets.... [Show full abstract]
    Keywords
    risk management; diversification; portfolio theory; off-farm investment; financial assets; NZ farmland; stochastic efficiency analysis; Agricultural Economics & Policy
    Date
    2003
    Type
    Conference Contribution - Published (Conference Paper)
    Collections
    • Department of Financial and Business Systems [507]
    Share this

    on Twitter on Facebook on LinkedIn on Reddit on Tumblr by Email

    Thumbnail
    View/Open
    Webster_Nartea_Pellegrino.pdf
    Metadata
     Expand record
    Citation
    Nartea, G. V., Pellegrino, J. M., & Webster, P. (2003). Should farmers invest in financial assets as a risk management strategy? Some evidence from New Zealand. In Proceedings of the 14th International Farm Management Congress. England: International Farm Management Association.
    This service is managed by Learning, Teaching and Library
    • Archive Policy
    • Copyright and Reuse
    • Deposit Guidelines and FAQ
    • Contact Us
     

     

    Browse

    All of Research@LincolnCommunities & CollectionsTitlesAuthorsKeywordsBy Issue DateThis CollectionTitlesAuthorsKeywordsBy Issue Date

    My Account

    LoginRegister

    Statistics

    View Usage Statistics
    This service is managed by Learning, Teaching and Library
    • Archive Policy
    • Copyright and Reuse
    • Deposit Guidelines and FAQ
    • Contact Us