The successful expansion of the U.S. crop insurance program has not eliminated ad hoc disaster assistance. An alternative currently being explored by members of Congress and others in preparation of the 2007 farm bill is to simply remove the "ad hoc" part of disaster assistance programs by...

Replaced with revised version of paper 07/29/10.

Rankings of different risk management portfolios including Average Crop Revenue Election (ACRE), traditional government payment programs, crop insurance and hedging in futures; and optimal choices of insurance coverage levels and hedge ratios are evaluated for a representative central Indiana...

Legislation has prompted changes in milk price volatility. Milk price volatility impacts the producer's exposure to business risk which is compound by the firms financial risk. Financial risk is a function of the firms capital structure. In the short run it is difficult for the producer to...

The biological nature of agricultural production processes induce a higher degree ofuncertainty surrounding the economic performance of farm enterprises. This has contributedto the development and acceptance of forms of public intervention aimed at reducing incomevariability that have no...

The aim of this paper is to point out some problems of index estimation for the purposes of weather derivative valuation considering the particularities of agriculture. The assessment of the sensitivity of barley to weather over 40 years has been the basis for the design and valuation of weather...

This paper summarizes the results of a survey of a stratified, random sample of 630 hog operations in Indiana and Nebraska. The survey was conducted in March and April, 2000 with support of a research grant to contribute to the development of a knowledge base to guide the design and...

As part of 1996 legislation, the U.S. began paying farmers production flexibility contract payments designed to be somewhat decoupled from current production decisions. In the labor-leisure model, decoupled payments would be expected to only have a wealth effect, but coupled payments would be...

Crop insurance and hedging are two risk management strategies used by farmers to manage risk. Using a discrete choice model and farm-level data, this study investigates the factors influencing farmers' use of hedging and crop insurance as risk management strategies. In the case of crop...

This report evaluates the 2002 farm bill and the effects of the individual programs within the bill on North Dakota net farm income. A stochastic simulation model was developed, using @Risk by Palisade. @Risk replaces the mean values for price and yield with a distribution of values for the...