Risk management strategy evaluation for corn and soybean producers

Returns to a model farm are simulated to assess the impact of marketing and insurance risk management tools as measured by mean net returns and returns at 5% value-at-risk (VaR). Results indicate that revenue insurance strategies and strategies involving a combination of price and yield protection p...

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Bibliographic Details
Published in:Agricultural finance review 2004-05, Vol.64 (1), p.45-60
Main Authors: Pritchett, James G., Patrick, George F., Collins, Kurt J., Rios, Ana
Format: Article
Language:English
Subjects:
Crop insurance
Management tools
Marketing strategy
Risk management
Soybeans
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Summary:Returns to a model farm are simulated to assess the impact of marketing and insurance risk management tools as measured by mean net returns and returns at 5% value-at-risk (VaR). Results indicate that revenue insurance strategies and strategies involving a combination of price and yield protection provide substantial downside revenue protection, while mean net returns only modestly differ from the benchmark harvest sale strategy when considering all years between 1986 and 2000.
ISSN:0002-1466
2041-6326
DOI:10.1108/00214660480001153