Crop insurance provides risk reduction benefits yet may increase planted acres in risky areas. This paper investigates the relationship between environmental quality and crop insurance induced changes in cropping pattern. Results suggest that yield risk and soil erosion are positively correlated...

Impacts of the expansion of crop insurance alternatives, increases in premium subsidies, and the 2002 Farm Bill are included in an evaluation of risk management strategies. Levels and variability of net farm revenue are analyzed by several criteria. Results indicate that effective strategies...

The scale of loss from natural disasters in low-income countries often exceeds the resources of internal and external sources of relief funding. Catastrophe bonds offer the opportunity to transfer the risk of low-probability, high-loss events to the capital market where there is greater capacity...

Production risk from live weight variation of market pigs has become a more important concern in U.S. swine production. Packers are concerned about the variation in carcass size because of the demand for standardized cuts and the use of automation in the slaughter process. Swine producers care...

A theoretical model based on opportunity cost and expected utility principles establishes linkages between the likelihood of prevented planting claims in crop insurance, existing share leasing arrangements and internal farm business structures. Results of probit estimation procedures indicate...

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 purpose of this research is to develop a rainfall insurance product to insure irrigation costs applied to NAP crops, and to compare the efficacy of this insurance on a dollar basis relative to conventional crop insurance. An economic model is developed that illustrates the relationship...

This paper examines the optimal location of a competitive firm in response to environmental costs imposed by the abatement investment and taxes when the cost of the environmental regulation varies spatially under uncertainty. It contributes to the literature by incorporating the spatial setting...

The U.S. market in subsidized commodity revenue insurance contracts has expanded rapidly since 1996. By far the most prevalent contract forms are crop-specific, rather than the whole-farm design which has a better claim to being optimal. For an arbitrary acre allocation vector, this paper...

This paper examines how uncertainty analysis can be used to examine parameter uncertainty; determine the expected value of model outcomes and the range of possible model outcomes for a non-linear integrated economic and biophysical model.