A Dynamic Analysis of Management Strategies for Alberta Hog Producers

Abstract

In this paper, we examine risk reductions possible by including off-farm assets with farm assets in a firm growth context. We specify a dynamic investment model in which an individual can invest in hog fmishing barns, stocks, and fmancial holdings. We solve this model for an Alberta hog fmisher using alternative objective functions representing different types of risk preferences. Our results indicate that holding stocks is an effective means of reducing risks and increasing wealth. -