| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Mitigating Cotton Revenue Risk Through Irrigation, Insurance, and Hedging
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| Autores: |
Barham, E. Hart Bise
Robinson, John R.C.
Richardson, James W.
Rister, M. Edward
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| Data: |
2011-11-16
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| Ano: |
2011
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| Palavras-chave: |
Cotton
Crop insurance
Irrigation
Options
Puts
Risk
Simulation
Stochastic efficiency with respect to a function
Farm Management
Risk and Uncertainty
D81
Q12
Q15
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| Resumo: |
This study focuses on managing cotton production and marketing risks using combinations of irrigation levels, put options (as price insurance), and crop insurance. Stochastic cotton yields and prices are used to simulate a whole-farm financial statement for a 1,000 acre furrow irrigated cotton farm in the Texas Lower Rio Grande Valley under 16 combinations of risk management strategies. Analyses for risk-averse decision makers indicate that multiple irrigations are preferred. The benefits to purchasing put options increase with yields, as they are more beneficial when higher yields are expected from applying more irrigation applications. Crop insurance is strongly preferred at lower irrigation levels.
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| Tipo: |
Journal Article
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| Idioma: |
Inglês
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| Identificador: |
http://purl.umn.edu/117946
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| Relação: |
Journal of Agricultural and Applied Economics>Volume 43, Number 04, November 2011
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| Formato: |
12
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