| This thesis investigates whether farmers incorporate risk into their farm planning decisions. Two case participant farms, from Southern Ontario, were visited to establish a base case of pro-forma budgets and financial statements.;Using a quadratic programming model optimal acreages were determined by minimizing risk subject to income, land, labour, tractor, combine, and crop rotational constraints. Participants selected one of the optimal farm plans from the E-V portfolio. Completed financial statements were compared against the base case.;One farmer selected a crop portfolio that was within 2% for income and 1% for risk. The other farmer selected a crop portfolio that had the same level of risk but increased his income by 15%. Since the one farmer was operating for all practical considerations on the E-V frontier the hypothesis that farmers incorporate risk into their farm planning decisions could not be rejected. |
