Purpose – The design and pricing of weather‐based insurance instruments is strongly based on an implicit assumption that the dependence structure between crop yields and weather variables remains unchanged over time. The purpose of this paper is to verify this critical assumption by...

Purpose – The purpose of this paper is to examine the potential gains in hedge ratio calculation for agricultural commodities by incorporating market linkages and prices of related commodities into the hedge ratio estimation process. Design/methodology/approach – A vector autoregressive...

Purpose – The purpose of this paper is to analyze the extent to which weather index‐based insurances can contribute to reducing shortfall risks of revenues of a representative average farm that produces corn or wheat in the North China Plain (NCP). The geographical basis risk is quantified...

Purpose – The purpose of this paper is to determine if a single dominant measure defines farm size and farm performance consistently over a ten‐year time period, or if alternative measures are needed. The paper also seeks to determine the correlation between farm size and farm performance...

Purpose – For many farm families and operators across the OECD countries, off‐farm income has become a major determinant of their well‐being. The purpose of this paper is to investigate the potential role of off‐farm employment as a risk management tool among farm operators....

Purpose – The purpose of this paper is to determine if there are positive microeconomic effects from a state‐funded loan participation program on farm productivity and investment behavior. Design/methodology/approach – The authors take the approach that access to credit solves a liquidity...