Reducing Yield Variation in Peach Orchards by Geographic Scattering

Assuming a declining correlation in yields as distance between pairs of orchards increases, yield variability in peach production may be reduced by increasing distances among orchards. As a measure of yield variability that avoids possible bias resulting from orchard-specific effects, a stochastic production function is estimated. Results support the assumption that a declining correlation between yields exists as distance increases. For every mile further apart, the correlation in yield declines 2.28%.