Alternative Strategies to Manage Weather Risk in Perennial Fruit Crop Production

Shuay-Tsyr Ho, Jennifer E. Ifft, Bradley J. Rickard and Calum Turvey

No 250036, Working Papers from Cornell University, Department of Applied Economics and Management

Abstract: Fruit producers in the Eastern United States face a wide range of weather-related risks during the growing season, and many of these events have the capacity to largely impact yields and profitability. This research examines the economic implications associated with responding to these risks for sweet cherry production in three different systems: using high tunnels to protect the crop, purchasing revenue insurance products, and employing weather insurance schemes. The analysis considers a distribution of revenue flows and costs using detailed price, yield, and weather data between 1984 and 2013. Our results show that the high tunnel system generates the largest net return if significant price premiums exist for earlier and larger fruit. Under most conditions, the results also indicate that net returns for the system that uses revenue-based crop insurance exceed those for the system that uses weather insurance products.

Keywords: Crop Production/Industries; Farm Management; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 32
Date: 2016-11
New Economics Papers: this item is included in nep-agr, nep-ias and nep-rmg
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https://ageconsearch.umn.edu/record/250036/files/Cornell-Dyson-wp1616.pdf (application/pdf)

Related works:
Journal Article: Alternative Strategies to Manage Weather Risk in Perennial Fruit Crop Production (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:cudawp:250036

DOI: 10.22004/ag.econ.250036

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