Options on agricultural futures are popular financial instruments used for agricultural price risk management and to speculate on future price movements. Poor performance of Black’s classical option pricing model has stimulated many researchers to introduce pricing models that are more...

We theoretically examine a farmer’s coverage demand with area and individual insurance plans as either separate or integrated options. The individual and area losses are assumed to be imperfectly and positively correlated. With actuarially fair rates, the farmer will fully insure with the...

The behavior of agricultural commodity markets can arguably result in markedly asymmetricprice cycles, that is, downward cycles of substantially different length and breadth thanupward cycles. This study assesses whether asymmetric-cycle models can enhance the understandingof the dynamics and...

This article has been made according to my dissertation in which I present some opportunity of risk analysis and risk managementin the decision support of crop production.Plant production is one of the most hazardous agricultural enterprises. Among risk sources seasonal fluctuation of average...

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...

Factors affecting the adoption of crop insurance, forward contracting, and spreading sales areanalyzed using multivariate and multinomial probit approaches that account for simultaneousadoption and/or correlation among the three risk management adoption decisions. Our empiricalresults suggest...

The U.S. Geological Survey has determined that irrigation in Arkansas’ Delta is unsustainable. This study examines how irrigation restrictions would affect county net returns to cropproduction. It also considers the effect of planting less water-intensive bioenergycrops—switchgrass and...

The commodity bull cycle of 2006-2008 and subsequent dramatic price decline have been asource of hardship for traditional commodity market participants such as producers andmerchant/shippers. The usefulness of futures markets has been called into question, especiallygiven that some market...