In this paper, we identified the most desirable farm income risk management strategies for two rotation systems in the Pacific Nowthwest(PNW)area under a framework of expected utility maximization. Insurance programs available to PNW farmers and wheat futures market instruments are included in...

Biofuels, as alternative transportation fuels, are now being used globally. Taking advantage of in-state feedstock supply is an efficient way to stimulate in-state biofuel industries and the local economy. This paper uses the mean-variance model of utility maximization to estimate supply...

White corn garners a premium over commodity corn, but suffers from additional price risk and yield drag. Using a simple bootstrap procedure, this research considers whether white corn premiums compensate for yield drag and evaluates the relative merits of various pre-harvest marketing...

In this paper we attempt an intertemporal study of risk management decisions for wheat growers in the Pacific Northwest. We apply a generalized expected utility model (GEU) to examine the farmers optimal choices of hedging ratios and crop insurance coverage levels in the presence of government...

The primary objective of this research is to integrate various avenues of risk management to provide a unified risk management strategy for the Kentucky producer. In addition the optimal insurance purchasing behavior and the impact of moral hazard on the optimal decisions of producers across...

Textbooks in agricultural economics characterize resources used in production agriculture into four categories; land, labor, capital and management. Profit is presented as earned in the process of management. This traditional list of resources is respecified. Management becomes a specialized...

This paper introduces a simple method of price risk decomposition that determines the extent to which producer price risk is attributable to volatile inter-market margins, intra-day variation, intra-week (day of week) variation, or seasonality. We apply the method to livestock markets in...

Forecasting feeder cattle basis has long been difficult because of the myriad factors that influence basis, including input and output prices and lot characteristics. This research draws upon knowledge of the various factors that influence cash feeder cattle prices to develop hedonic feeder...

Optimal hedge ratios are estimated for various weights of feeder cattle in four cash markets based on CME data from 1992 to 1999. Three-month uniform hedges are simulated for every weight, contract, and cash market combination. Hedging effectiveness is compared empirically across locations to...