One of the key factors affecting the crop output is the rainfall volume. For this reason, insurance plans based on the rainfall deviation of the mean have been advanced. This paper provides prospects of rainfall-indexed insurance in Romania considering the tradeoff between moral hazard and basis...

Recent studies shows that marketing potential for BSE-tested and traceable beef might exist (Abidoye, et al. 2011, Bailey, et al. 2005, Dickinson and Bailey 2002, Dickinson and Bailey 2005, Loureiro and Umberger 2007). Although consumers’ willingness to pay for is a necessary condition for...

Crop insurance provides risk reduction benefits yet may increase planted acres in risky areas. This paper investigates the relationship between environmental quality and crop insurance induced changes in cropping pattern. Results suggest that yield risk and soil erosion are positively correlated...

The scale of loss from natural disasters in low-income countries often exceeds the resources of internal and external sources of relief funding. Catastrophe bonds offer the opportunity to transfer the risk of low-probability, high-loss events to the capital market where there is greater capacity...

Uncertain reservoir inflows represent a major source of risk for irrigated agriculture. A derivative instrument that uses reservoir inflows as the underlying variable is designed and tested with a recursive stochastic simulation of the Rio Mayo irrigations system. The results indicate that the...

This paper studies farm business interruption insurance for Classical Swine Fever epidemics. Insight into the size of risk is obtained by a very detailed Monte-Carlo simulation model that includes both epidemiological and economic factors. The paper also considers issues such as farmers' and...

Developing new risk management products for all agricultural commodities has increased in importance given recent legislation. Vegetables have been difficult to insure. This paper investigates the use of index contracts for growers belonging to a Kentucky vegetable cooperative. Index contracts...

Recent legislation has cleared the way for subsidized livestock price insurance. Such programs could increase production. Expected feeder cattle prices with and without subsidized insurance will be analyzed using E-V and Stochastic Dominance. Results will highlight the potential effects of the...

Stochastic dominance analysis of five crop rotations using twenty-one years of experimental yield data returned results consistent with Pennsylvania cropping practices. The analysis incorporated yield risk, output price risk, and rotational yield effects. A rotation of two years corn and three...