A farm’s physical investment is affected by its fundamental q and by its financial situation, with the later comprising both the firm’s liquidity and its possibility of facing capital market imperfections. This study determines the effects of government payments, depreciation, and inflation...

This paper assesses the impacts of decoupled government transfers on production decisions of a sample of Kansas farms observed from 1996 to 2001. Our model allows for risk, risk attitudes and the intertemporal investment decisions. We also allow for different adjustments of the decision...

This paper assesses the impacts of decoupled government transfers on production decisions of a sample of Kansas farms observed from 1996 to 2001. Our model allows for risk, risk attitudes and the intertemporal investment decisions. We also allow for different adjustments of the decision...

Firms producing ethanol may find management of the price risk associated with production of this leading alternative fuel a key factor to continued success. As with other agricultural commodities, the influence and ability of futures contracts to serve as a risk management tool deserves attention.

The crop insurance purchase decision for a group of Kansas farmers is analyzed using data from 1990sa period that experienced many changes in the federal crop insurance program. Farm-level data are used. Results indicate a reduction in the elasticity of the demand for crop insurance with respect...

Six measures of returns are used to estimate the most "“appropriate"” market index for southeast Kansas farms. Results suggest that localized indices are more appropriate than state indices for use as the market index. The appropriate index was used to estimate systematic and...

The marginal benefit and cost of diversification for Florida orange producers is analyzed using certainty equivalents. Results indicate that for moderate and high levels of risk aversion, diversification into strawberry, grapefruit, or additional orange production is not optimal. However,...

Agricultural lenders in today's environment face many challenges when evaluating the creditworthiness of farm borrowers. To address these challenges, a survey was conducted with financial institutions in Kansas and Indiana where agricultural lenders were asked for their response to hypothetical...