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...

This paper is designed to validate if the agricultural sector can once again be labeled as an instigator of the late-2000s Great Recession using the early warning models technique. The empirical results indicate that exposure to agribusiness operations does not necessarily enhance a banks’...

In the paper, preliminary results of the analysis of potential use of climate forecast information in designing rainfall index insurance in the southeastern region of the U.S. are reported. Joint distributions of bi-monthly rainfall and El Nino Southern Oscillation (ENSO) indexes are estimated...

The magnitude of basis risk between Actual Production History (APH) and Group Risk Plan (GRP) contracts across corn farms in Illinois counties is estimated using pseudo-simulated yields with farm specific geospatial climate data. A two-step hierarchical Bayes small area estimator was used to...

During the financial downturn of 2008, asset classes that investors traditionally found to have low correlation with U.S. stocks became more highly correlated at the most inopportune time. Post-downturn, investors increasingly looked for alternative assets that offer diversification benefits,...

Recent trend depicts that tomatoes and tomatoes products rank 2nd most important vegetable crop in the United States after potatoes and potatoes products contributing 20 percent of total vegetable production. More-so, tomato is equally ranked 2nd in the United States in terms of production...

Replaced with revised version of paper 02/10/10.

This research evaluates the effects of the key changes that took place in the design of Class III milk pricing within Federal Milk Marketing Orders (FMMOs) on milk price behavior and dairy farm profitability over three milk pricing regimes: Minnesota-Wisconsin price series (1960s – 1995),...

We analyze the factors influencing farmer’s diversification decisions while taking into account the simultaneous decision making. Using a national data on farm-level in the US and a multivariate analysis, our study suggests that agricultural, structural, environmental, and income...