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| Nyambane, Gerald G.; Hanson, Steven D.; Myers, Robert J.; Black, J. Roy. |
| The vast majority of previous studies on farmers' optimal risk management behavior have used static models and on the most part ignored use of borrowing and lending as an alternative method of managing risk In this paper we develop a stylized multi-period risk management model for a risk averse farmer who can use revenue insurance to manage risk and also borrow and lend subject to a credit constraint. The model is applied to an example farm from Adair County in Iowa and the results provide three important messages. First, contrary to the full coverage of actuarially fair insurance result expected from using purely static analysis, at low revenues, insurance coverage may not be taken in the absence of debt. Second, if debt is available, full coverage will... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Risk and Uncertainty. |
| Ano: 2002 |
URL: http://purl.umn.edu/19072 |
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| Nyambane, Gerald G.; Black, J. Roy. |
| Capital budgeting decisions faced by tart cherry producers often challenge our traditional valuation techniques. Real Options Valuation (ROV) methods may be useful but assumptions of existing ROV approaches are restrictive and, in some cases, unrealistic. In this paper we assert that use of existing option pricing methods can not be justified. Instead, dynamic programming approach is more appropriate. We develop a multi-period model and use it to obtain an optimal orchard replacement policy. The model is applied to an example farm from Northwestern Michigan and the results provide the following messages. First, flexibility options can be estimated for individual tart cherry producers using the DP approach albeit, indirectly. Second, a farmer who uses the... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Farm Management. |
| Ano: 2004 |
URL: http://purl.umn.edu/20011 |
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| Argwings-Kodhek, Gem; Jayne, Thomas S.; Nyambane, Gerald G.; Awuor, Tom; Yamano, Takashi. |
| Agriculture forms the foundation of Kenya’s economy. However, the information base on agriculture % including basic indicators on farmers’ input, production, and marketing behavior, household food consumption patterns, etc. % is weak and largely outdated. Agricultural policy is largely made on the basis of conventional wisdom about the way things work. In a dynamic, evolving economy, long-standing perceptions may become increasingly inconsistent with current reality, particularly when the system has been exposed to dramatic changes such as structural adjustment, market liberalization, and the advent of new technology. In such a setting, entrenched perceptions about the way farmers, traders and consumers actually behave may lead to unintended and even... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Kenya; Agricultural policy; Food security; Household; Agricultural and Food Policy; Food Security and Poverty; Q12. |
| Ano: 1998 |
URL: http://purl.umn.edu/57056 |
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