This paper studies the application of the Conditional Value-at-Risk (CVaR) in the crop insurance industry under climate variability. We designed a model to help farmers decide about buying crop insurance products to reduce climate and price risks. The objective is to minimize farmers' return...

Livestock Gross Margin insurance for dairy cattle (LGM-Dairy) is a risk management tool that can be used to insure a lower bound on a dairy producer’s gross margin. In this paper we (1) review the basic structure of LGM-Dairy (2) examine the sensitivity of Gross Margin Guarantee (GMG) and...

This study analyzes the potential synergies and conflicts of interest between farmers and insurers in the selection of an optimal crop insurance contract. Special attention is given to how climate information influences this decision-making process. To do so, we consider a representative 40...

The Livestock Gross Margin Insurance for Dairy Cattle is a federally reinsured insurance program that enables US dairy producers to establish minimum levels of milk income net of feed cost. Given the structure of this program there are an infinite number of possible contract designs based on the...

The US dairy sector is facing structural changes including a geographical shift in dairy production and a tendency towards the implementation of more intensive production systems. These changes might significantly affect farm efficiency, profitability and the long-term economic sustainability of...

This study analyzes the determinants of TE among traditional dairy farms in the State of Wisconsin taking into account dairy farms’ heterogeneity. To do so, we first estimate a production frontier and the level of TE using the SPF framework. Then we analyze the determinants of TI using a...

This study examines the effect of climatic variables on dairy farm productivity using panel data for the state of Wisconsin along with alternative stochastic frontier models. A noteworthy feature of this analysis is that Wisconsin is a major dairy producing area where winters are typically very...