Threshold cointegration models are used to evaluate spatial price dynamics among regional corn and soybean markets in North Carolina. Thresholds, reflecting the influences of transactions costs, are confirmed and spatial integration is strongly supported. Results indicate that equilibrating...

This study investigates nonparametrically the optimizing behavior of a sample of 289 Kansas farms under profit-maximizing and cost-minimizing hypotheses. The results do not support strict adherence to either optimization hypothesis. However, evidence against cost-minimizing behavior seems to be...

We pursue two distinct approaches to measuring the stability and validity of conventional approaches to measuring acreage response. Our focus is on corn and soybeans, which have perhaps been the most significantly impacted of the main commodities by market and policy changes. As noted, much of...

This paper considers probabilistic models of hurricane-induced animal waste lagoon failures in North Carolina. A substantial number of waste lagoons exist in areas prone to hurricane damages. We evaluate expected losses which represent actuarially-fair insurance premium rates for a plan that...

The Law of One Price (LOP) is an important ingredient in theories of international trade and exchange rate determination. An important shortcoming of the existing empirical literature is that parity is typically assumed to hold contemporaneously. This overlooks the fact that international...

The US crop insurance program previously used a simple average of equally weighted historical loss cost data to serve as the backbone for estimating crop insurance premium rates. This article develops a procedure for weighting the historical loss cost experience based on longer time-series...

Currently there is ample discussion among EU Institutions (European Commission, European Parliament, and Member States’ governments) on the possibility of setting up a comprehen sive EU-wide framework on risk and crises in agriculture. With the changes introduced in the proposed...

The U.S. government has been extensively involved in providing income support and risk management policies for U.S. farmers over the last 65 years. Risk management policies have included crop insurance, disaster relief, and in recent years, revenue insurance. Recent policy changes signaled an...

Three specific aspects of agricultural risk management are addressed 1. Recent developments in price volatility and yield risk 2. The role of policy: - Subsidized crop insurance with examples from the massive US program ($115 billion in liability in 2011) - The 2012 US Farm Bill, which is...

Replaced with revised version of paper 07/18/08.