Decision-making without complete knowledge is a problem of major significance in the agricultural economy. Because of uncertainty, production planning is frequently imperfect. This results in lower incomes for farm people and a mis-allocation of productive resources. Uncertainty may prevent production at minimum cost; it may interfere with the optimum adjustment of the composition of agricultural output to the pattern of market demand. Moreover, it can operate as a major obstacle in achieving the most efficient farm size.
Kaldor, Donald R. and Heady, Earl O.
"An exploratory study of expectations, uncertainty and farm plans in southern Iowa agriculture,"
Research Bulletin (Iowa Agriculture and Home Economics Experiment Station): Vol. 31
, Article 1.
Available at: https://lib.dr.iastate.edu/researchbulletin/vol31/iss408/1