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Enhancing Soybean Profitability Using Portfolio Theory, Osemenkhian Cynthia Onyechere

Graduate Theses and Dissertations

The purpose of this study was to estimate the effect of utilizing portfolio theory on producers' profitability in the production of soybeans in three test locations - Keiser, Marianna and Rohwer - in Arkansas. The study used empirical yield data, their variances and covariances over a nine year period (2002-2010) in selecting a portfolio of soybean varieties that maintains or increases yield while minimizing the yield risk. Furthermore, carbon emissions associated with soybean production was estimated by modeling the effect of a potential carbon tax as well as the potential benefit of carbon offset payments resulting from carbon sequestration. The …