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Article
Incorporating Risk Into Quality Characteristic Evaluation: A Cold Season Grass Production Example
Journal of Agribusiness (2010)
  • Kynda R. Curtis, Utah State University
  • Margaret W. Cowee
  • Man-Keun Kim, Utah State University
  • Thomas R. Harris
Abstract
This study examines the impact of cool season grass quality characteristics on pricing and net returns in niche equine feed markets. A hedonic analysis of Timothy grass hay prices in Nevada was performed to determine the implicit values of its quality characteristics. A Monte Carlo simulation was then conducted to estimate the distribution of net returns to improving grass hay quality characteristics. Results show that the presence of foreign matter had the largest impact on grass hay price, followed by seller reputation and hay color. However, for risk-averse producers, enhancing seller reputation and grass hay color are the preferred strategies for increasing net returns.
Keywords
  • Risk,
  • Quality,
  • Characteristic,
  • Cold Season,
  • Grass,
  • Production,
  • Example
Publication Date
January 1, 2010
Citation Information
Curtis, K.R., M.W. Cowee, M-K. Kim, and T.R. Harris (2010) “Incorporating Risk into Quality Characteristic Evaluation: A Cold Season Grass Production Example” Journal of Agribusiness 28(1):1-18.