The 2002 Farm Bill altered the peanut program. Peanut producers have indicated interest in a New Generation Shelling Cooperative (NGSC). This study simulates inherent risks and potential risk management strategies for a NGSC. These strategies are ranked using various metrics to understand their...

Index crop insurance products can eliminate the asymmetric information problem inherent in farm-level multiple peril crop insurance. Purchasers of index insurance products are, however, exposed to basis risk. This study examines the feasibility of various index insurance products for corn farms...

An alternative unconstrained expected-utility maximization model of farm debt is developed using the location-scale parameter condition that incorporates the empirically validated hypotheses of decreasing absolute and constant relative risk aversion. Simulation-optimization results based on the...

Replaced with revised version of paper 01/29/04.

This paper provides a theoretical analysis for the optimal portfolio of weather index and individual crop insurance in farm level under mean-variance framework and stresses the impacts of risk aversion level, transaction cost, and basis risk. An empirical application of corn farms in Todd county...

Target-MOTAD was used to determine the optimal crop insurance options for two representative cotton and peanut farms in southern Alabama. Results showed that, for one of the farms, no crop insurance option was risk reducing given the yield history. For the other farm, risk reduction involved...

Index crop insurance products can eliminate the asymmetric information problem inherent in farm-level multiple peril crop insurance. Purchasers of index insurance products are, however, exposed to basis risk. This study evaluates the efficiency of various index insurance products to reduce farm...

This paper evaluates the feasibility of farmer-owned crop insurance accounts. The accounts, similar to retirement accounts, accumulate pre-subsidy premiums and dispense indemnities. Government involvement is that of guaranteeing loans if indemnities exceed the account balance. Substantial...

We assess the economic feasibility of a 10 MMGY biodiesel plant using a Monte Carlo Cash Flow model programmed in Excel using @Risk, a simulation and risk analysis software. The model incorporates stochastic components to capture uncertainty in the analysis. The stochastic components are mainly...

Using data between 1995 and 2010, we find that agricultural banks are benefiting from the derivatives activities by reducing total risk without hurting their profit. In nonagricultural banks, both profitability and total risk are adversely affected, possibly due to speculative derivatives positions.