We develop a portfolio choice model for farmers faced with both price and production uncertainty who can hedge this uncertainty using both options and futures contracts. We then simulate the decision process of a typical Iowa farmer and derive his or her optimal options and futures position.

This paper is an original attempt to find ways to estimate total factor productivity change on individual crops especially when certain input quantities and cost and profit data are unavailable. The study also develops a method, which is a measure of change in absolute productivity, to allow...