 The impact of US commodity programmes on hedging in the presence of crop insuranceEuropean Review of Agricultural Economics, 2004, vol. 31, issue 3, 331-352 Abstract: An expected utility maximisation model assesses risk management strategies for US non-irrigated crop producers under provisions of the 2002 Farm Bill. Results suggest that farm programme payments account for the primary value of all risk management portfolios analysed. Hedging is not used extensively unless counter cyclical payments and loan deficiency payment provisions are removed from government programmes, or expected market prices are high relative to the government target price. Under the current premium subsidy regime, optimum risk management portfolios consistently include revenue insurance with price replacement if available for the crop, followed by yield insurance. Hedging with futures plays a significant role only if the futures transaction cost is eliminated. A small diversification impact is observed. Copyright 2004, Oxford University Press. Date: 2004 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:erevae:v:31:y:2004:i:3:p:331-352 Ordering information: This journal article can be ordered from Access Statistics for this article European Review of Agricultural Economics is currently edited by Timothy Richards, Salvatore Di Falco, Céline Nauges and Vincenzina Caputo More articles in European Review of Agricultural Economics from Oxford University Press and the European Agricultural and Applied Economics Publications Foundation Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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