Purpose – For many farm families and operators across the OECD countries, off-farm income has become a major determinant of their well-being. The purpose of this paper is to investigate the potential role of off-farm employment as a risk management tool among farm operators....

Purpose – The purpose of this paper is to examine a new insurance policy against natural disasters. Design/methodology/approach – The authors propose an optimisation model, which involves both the insurer and the farmer. The farmer decides to insure his farm if and only if insurance improves...

Purpose – The purpose of this paper is to measure the profit impacts of adopting input and output risk management tools at the farm level. Design/methodology/approach – The analysis examines three years of farm-level data from the Agricultural Resource Management Survey (ARMS) that include...

Purpose – The purpose of this paper is to analyze the extent to which weather index-based insurances can contribute to reducing shortfall risks of revenues of a representative average farm that produces corn or wheat in the North China Plain (NCP). The geographical basis risk is quantified to...

Purpose – This article seeks to examine the reference yield calculation method used in crop insurance rating and provides recommendations that could potentially improve actuarial performance of the Federal crop insurance program. Design/methodology/approach – Conceptual, numerical, and...

Purpose – This study seeks to evaluate the impacts of land rental arrangements on crop insurance and grain marketing decisions. Design/methodology/approach – The analysis is conducted in an Illinois corn-soybean setting in which optimal marketing and crop insurance decisions are estimated...

Purpose – The purpose of this paper is to investigate the relationships among choice of risk management tools, perceived effectiveness of risk management tools, self-reported risk attitude, and farm and farmer characteristics. Design/methodology/approach – A mail survey was used to collect...

Purpose – The purpose of this paper is to present empirical evidence of risk balancing behavior by European farmers. More specifically, the authors investigate strategic adjustments in the level of financial risk (FR) in response to changes in the level of business risk (BR)....

Purpose – The purpose of this paper is to introduce a novel measure of access to credit suited to estimate the relative change in credit reserves. Design/methodology/approach – A debt possibility frontier is estimated using data envelopment analysis and the Malmquist index is calculated. The...

Purpose – The purpose of this paper is to examine the sources and magnitude of variation in accrual adjusted gross farm revenue and farm revenue net of feed purchases on Michigan dairy farms representative of Upper Midwest dairy farms. The paper aims to assess whether adjusted gross...