This paper studies a land use switching model as a measure of adaptation to climate change in tart cherry industry in Michigan. In order to capture the effects of extreme events, we employ a real options land conversion model where an underlying stochastic process allows a Poisson-type jump...

Risk and uncertainty over the results of agricultural production were always considered as impediments for the development of agricultural sector and rural areas. Besides traditional weather and market related sources of uncertainty, agriculture in transition economies is facing one more major...