Optimal Marketing of Nursery Crops from ContainerBased Production Systems
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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.
American Journal of Agricultural Economics
author list (cited authors)
Stokes, J. R., Mjelde, J. W., & Hall, C. R.
complete list of authors
Stokes, Jeffrey R||Mjelde, James W||Hall, Charles R