ABSTRACT
This chapter provides appropriate statistical measures of the variability of prices, yields, and income of cotton and corn crops in the late nineteenth century South. It provides an answer to the question of whether cotton or corn was a riskier crop. The chapter proposes the use of a more conventional model to explain the particular crop mix between cotton and corn in the South. It describes empirical evidence to answer the question of whether Southern farmers were risk averse or whether the particular portfolio of crops chosen by post-bellum farmers implied that they were risk preferers—that is, gamblers. The chapter addresses, it is necessary to know whether or not postbellum Southern farmers were aware of the risks in agriculture. It attempts will be made to determine if postbellum Southern farmers were risk averting or risk preferring individuals. The determination of risk averting or risk preferring behavior on the part of postbellum Southern farmers depends on having a known preference ranking.
