Sugar production and supply are managed in the United States in order to support minimum prices set by the law. The government is required to run the sugar program at no net cost to taxpayers. The sugar-to-ethanol program of the 2008 farm bill was created by the government to sell surplus sugar...

The 2002 Farm Security and Rural Investment Act (FSRIA) provides for three different types of payments for an expanded list of farm commodities. Each type of payment has unique implications for farm market and financial risk management.

A framework is developed to examine the 2011 pilot program established by the Risk Management Agency (RMA) to insure organic crops. Given that for insurance purposes RMA links organic crop prices to their conventional counterparts by a fixed percentage, we calibrate our model to reflect the...

A large variety of subsidized crop insurance products are available to U.S. crop growers. Distinct and perhaps puzzling patterns in the choices of insurance products and coverage levels can be discerned. Where production conditions are better and yields are less risky then (a) higher insurance...

A large variety of subsidized crop insurance products are available to U.S. crop growers. Distinct and perhaps puzzling patterns in the choices of insurance products and coverage levels can be discerned. Where production conditions are better and yields are less risky then (a) higher insurance...

The use of plausible stochastic price processes in price risk analysis has allowed advances not seen in crop yield risk analysis. This study develops a stochastic process for yield modeling and risk management. The Pólya urn process is an internally consistent dynamic representation of yield...

While controversy surrounds skewness attributes of typical yield distributions, a better understanding is important for agricultural policy assessment and for crop-insurance rate setting. Day (1965) conjectured that crop yield skewness declines with an increase in nitrogen use at low levels but...

A framework is developed to examine organic crop insurance established by the Risk ManagementAgency (RMA). Given that the RMA links organic and conventional crop prices, the modelis calibrated to reflect both markets to illustrate the impacts that pricing has on insurancecoverage. Findings...

The Agricultural Risk Protection Act of 2000 recognized organic farming as a“good farming practice,†making federal crop insurance coverage available for organiccrops, and taking into account the idiosyncrasies of the organic production system. Inaddition to the production risks...