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Purpose: The authors determine the effectiveness of the Rainfall Index Annual Forage Program (RIAFP) in offsetting yield risk of winter annual forage growers. The authors also evaluate the effectiveness in reducing risk of potential alternative weather indices. Design/methodology/approach: The...
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An important characteristic of agricultural commodity markets is the extent to which those markets respond to price changes in related markets. Given a competitive market structure, the Law of One Price (LOP) postulates that spatial price relationships are determined by transfer cost1 among...
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