A non-interactive methodology to assess farmers' utility functions: An application to large farms in Andalusia, Spain

This paper proposes a methodological approach for eliciting farmers' utility functions. The methodology is non-interactive, in that the parameters defining the utility function are obtained by observing the actual behaviour adopted by farmers without resorting to the use of questions on random lotteries. The methodology recognises that the farmer attempts to achieve several objectives, most of which are in conflict. The methodological approach is applied to a large farmer in the county of Vega de Cdrdoba, Spain. The primary empirical finding of this research was a satisfactory explanation of farmers' behaviour through a multi-attribute utility function with three attributes: working capital, risk and level of relative profitability.