where is the standard deviation of annual profits of farm i, is the standard deviation of annual cash flow generated by farm i, is a dummy variable, which value is 1 when the farm applies historic cost valuation to biological assets and 0 otherwise, is the annual variation of profit of farm i in year j with respect to previous year, is the annual variation of cash flow generated by farm i in year j with respect to previous year and is the annual variation of sales of farm i in year j with respect to previous year. profitstdvi dvi cashflowsti sthistoricco profitijij cashflow ij sales