A stochastic simulation model is used to simulate crop revenues net of farm policy and crop insurance costs. Certainty equivalent analysis is used to rank farm policy and crop insurance alternatives for varying levels of risk aversion.

Farm management skills can affect farm managers' performance. In this article, farm management performance is analyzed based on yearly Illinois Farm Business Farm Management (FBFM) panel data across 6,760 farms from 1996 through 2011. Two out-of-sample measures of skill are used to analyze the...

A stochastic simulation model is used to determine crop insurance premiums and farm program payments for a Illinois corn-soybean and Mississippi corn-soybean-rice-cotton farm. The optimal portfolio of crop insurance and farm programs are determined subject to payment limitations and crop...

As concerns continue to mount regarding man induced impacts to the global climate, the SHPT region could be faced with a unique scenario in which the net carbon balance should be considered in the producer’s enterprise selection and production systems. Currently, the SHPT produces nearly one...

Capital budgeting decisions faced by tart cherry producers often challenge our traditional valuation techniques. Real Options Valuation (ROV) methods may be useful but assumptions of existing ROV approaches are restrictive and, in some cases, unrealistic. In this paper we assert that use of...

The 2002 Farm Act allowed farm owners to update base acres for direct payments (DPs) and counter-cyclical payments (CCPs) and to update yields for counter-cyclical payments. A minority, about 40 percent, of the 1.9 million enrolled farms choose to update their base acres using 1998-2001...

The impact of new manure management regulations depends on the willingness of crop producers to accept manure. A contingent valuation analysis of crop producers was used to estimate the willingness of crop producers to accept or pay for manure. Results indicate that producers will pay a positive...

A translog stochastic cost frontier is estimated to calculate cost efficiency index (CEI) of 203 Kenyan and Ugandan maize producers using survey data from 2003. Results show a mean CEI of 1.95, with greater inefficiency among farms in Kenya of medium-large size. Key sources of inefficiency are...

A regression model was used to investigate the determinants of soil nutrient depletion in Uganda. The major determinants of soil nutrient balances are household endowments, access to markets, and extension services, non-farm activities and agricultural potential. The results suggest the need to...