An empirical study involving derivations of farmers' utility functions and the accuracy of these functions in predicting practical decisions is here reported. Three models of utility estimation which were used are compared as to their predictive accuracy and usefulness under field conditions. The study tests the hypothesis that maximizing expected utility, as a criterion of decision, is superior to maximizing expected monetary value. Utility functions are derived for two points in time in order to test the hypothesis that, if utility functions are to serve as a guide to the decision maker, they must be derived at each point in time at which decisions are made. Implications for decision-making research and for practical farm decision making are indicated. 0< We are indebted to John L. Dillon for helpful comments.

Using the results of an empirical study of farmers' utility functions, evidence is presented that risk plays a measureable role in farmer decision making. The extension implications of such risk influences are discussed with particular emphasis on the possible efficacy of using group utility functions as a bads for group recommendations.

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