Evaluation of risk management alternatives for indiana grain producers

Crop insurance and pre‐harvest pricing strategies were analyzed for “all years” and “years following a normal crop year” scenarios for the 1986 through 2001 period in three Indiana counties. Crop insurance products and early spring pre‐harvest marketing generally had positive returns for producers. A large number of strategies provided higher mean revenues, higher 5 per cent values‐at‐risk, and higher certainty equivalents than the benchmark strategy. Although pre‐harvest marketing strategies had the highest certainty equivalents in both scenarios, net farm revenues were lower and crop insurance combined with pre‐harvest pricing were common among top‐ranked strategies following normal crop years.