Optimal marketing of nursery crops from container-based production systems

abstract

• Optimal production and marketing decisions for a nursery producing ornamental plants from a container-based production system are determined. The stochastic dynamic programming model developed captures the existence of a value-added, serial-stage production process with multiple products and intra- and interyear dynamics. Results suggest price differentials play an important role in determining the optimal size of plant to market. Further, federal taxes are important for determining the optimal production and marketing decisions while discounting and state taxes play minor roles. Analysis of the transition probability matrices associated with the optimal decisions indicate that the long-run behavior of the system can be generalized.

authors

• Hall, Charles
• Mjelde, James

published proceedings

• AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS

author list (cited authors)

• Stokes, J. R., Mjelde, J. W., & Hall, C. R.

citation count

• 4

complete list of authors

• Stokes, JR||Mjelde, JW||Hall, CR

publication date

• January 1997

publisher

• Wiley  Publisher

published in

• American Journal of Agricultural Economics  Journal

keywords

• Marketing
• Nursery
• Stochastic Dynamic Programming
• Taxes
• Value-added

Digital Object Identifier (DOI)

• 10.2307/1243957

start page

• 235

end page

• 245

volume

• 79

issue

• 1

URL

• http://dx.doi.org/10.2307/1243957