Purpose – The purpose of this paper is to analyze the effects of data aggregation and farm-level crop acreage on the level of natural hedge, i.e. the level of price-yield correlations, which is an important issue in risk modeling and management. Design/methodology/approach – Swiss FADN data...

Agricultural insurance in Ukraine is mostly offered on the basis of traditional products including PMCI, named perils and single peril coverage. The index concept was introduced in 2001 though until 2005 the insurance companies provided index crop insurance through area-based yield index...

Characteristics of farm level yield and revenue loss that is systemic with yield and revenue loss at the county, state, and U.S. level are examined using farm yields from the Illinois and Kansas farm business management associations. The data begins with 1972. Share of yield and revenue loss...

Recent changes in federal farm programs and contemporary farm program proposals highlight an evolving shift in farm policy from income support to risk management. A mix of price- and revenue-based commodity programs as well as yield- and revenue-based insurance products provide crop producers a...

Although significant research has been done on managing farmers’ financial risk through federal programs such as federal crop insurance, to date, little attention has been paid to the ability of on-farm management’s potential to mitigate agricultural risk. Federal crop insurance could...

This study compares the effectiveness of two crop insurance plans: an individual farm-yield measurement similar to the current Federal Crop Insurance Corporation multi-peril program and an area-yield measurement method. These methods are examined for reduction in yield and gross farm income...

Crop insurance is widely used on major crops raised in the Northern Plains. Prospective reductions in the crop insurance premium subsidy are commonly expected to result in lower use of insurance. Corn and soybean producers in South Dakota responded to the shift in subsidy levels beginning in...

Crop insurance products can improve and stabilize economic performance. However, due to insurance market imperfections, the use of insurance products often requires governmental support. This paper analyses the actual impact of insurance products on the economic performance of cropping farms by...

Systemic weather risk is a major obstacle for the formation of private (nonsubsidized) crop insurance. This paper explores the possibility of spatial diversification of insurance by estimating the joint occurrence of unfavorable weather conditions in different locations. For that purpose copula...

There is growing concern about the impact of climate change on agriculture and the potential need for better risk management instruments that respond to a more risky environment. This is based on the widespread assumption that climate change will increase weather and yield variability and will...