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Analyzing Crop Revenue Safety Net Program Alternatives and Implications on Marketing Decisions

Author

Listed:
  • Jansen, Jim A.
  • Lubben, Bradley D.
  • Stockton, Matthew C.

Abstract

This study evaluates the crop revenue effects of combining federal farm income safety net programs, crop insurance policies, and marketing arrangements. Eight representative farms across Nebraska are used to stochastically simulate the financial impact of nine risk management strategies to determine the optimal outcome during the 2011 production year. Results indicate that, out of the set of predefined strategies, the portfolio combination involving the government program choice of the Direct and Counter­ Cyclical Program, crop revenue insurance with the fall harvest option, and hedging for the simulated time period provides the optimal outcome across the majority of representative farm scenarios.

Suggested Citation

  • Jansen, Jim A. & Lubben, Bradley D. & Stockton, Matthew C., 2012. "Analyzing Crop Revenue Safety Net Program Alternatives and Implications on Marketing Decisions," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 30(2).
  • Handle: RePEc:ags:jloagb:260197
    DOI: 10.22004/ag.econ.260197
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    Citations

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    Cited by:

    1. Lubben, Bradley & Stockton, Matthew & Protopop, Iuliia & Jansen, Jim, 2013. "Analyzing Federal Farm Program and Crop Insurance Options to Assess Policy Design and Risk Management Implications for Crop Producers," 2013 AAEA: Crop Insurance and the Farm Bill Symposium 157827, Agricultural and Applied Economics Association.
    2. Purnamasari, Ririn S., 2007. "Deforestation in Indonesia: A Household Level Analysis of the Role of Forest Dependence and Poverty," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 10353, Australian Agricultural and Resource Economics Society.
    3. Tripp, Amanda S. & Henderson, Kathryn E. & Andreyeva, Tatiana, 2012. "Grocery Purchases of WIC and SNAP Recipients: Quantifying the Effect of a Prescriptive Program Design," 2012 AAEA/EAAE Food Environment Symposium 123514, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Agricultural Finance;

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