Simulated Western Kentucky Grain Farm Cash Flows, Working Capital Erosion, and Evaluation of Risk Management Tools to Manage these Risks

Todd Davis, Tyler Mark and Jonathan Shepherd

No 252745, 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: A stochastic simulation model is used to evaluate the profitability and liquidity of a low cost / low debt and high cost / high debt Western Kentucky corn-soybean farm over a five-year period. The model evaluates the effectiveness of crop insurance, government programs, and cash-forward contracts risk management tools and the impact on liquidity and profitability.

Keywords: Agricultural Finance; Farm Management; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 22
Date: 2017
New Economics Papers: this item is included in nep-agr, nep-cmp, nep-ias and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea17:252745

DOI: 10.22004/ag.econ.252745

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