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The Effectiveness of Dairy Risk Management at Managing Income, Revenue, and Margin Risk


  • Herbst, Brian K.
  • Anderson, David P.
  • Outlaw, Joe L.
  • Richardson, James W.


With the 2009 milk prices still fresh on everyone’s mind, there has been increased interest in ways to limit milk price volatility. Using SERF, this paper determined some dairies are willing to pay for limited milk price volatility and found a value they are willing to pay using risk premiums.

Suggested Citation

  • Herbst, Brian K. & Anderson, David P. & Outlaw, Joe L. & Richardson, James W., 2011. "The Effectiveness of Dairy Risk Management at Managing Income, Revenue, and Margin Risk," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98833, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea11:98833

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    1. Richardson, James W. & Outlaw, Joe L. & Anderson, David P. & Raulston, J. Marc & Herbst, Brian K. & Sartwelle, James D., III & Schwart, Robert B., Jr. & Schumann, Keith D. & Feldman, Paul A. & Klose, , 2004. "Representative Farms Economic Outlook for the December 2004 FAPRI/AFPC Baseline," Briefing Series 42668, Texas A&M University, Agricultural and Food Policy Center.
    2. J. Brian Hardaker & James W. Richardson & Gudbrand Lien & Keith D. Schumann, 2004. "Stochastic efficiency analysis with risk aversion bounds: a simplified approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 253-270, June.
    3. Richardson, James W. & Klose, Steven L. & Gray, Allan W., 2000. "An Applied Procedure For Estimating And Simulating Multivariate Empirical (Mve) Probability Distributions In Farm-Level Risk Assessment And Policy Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(02), August.
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    Dairy; Stochastic Simulation; price volatility; Agricultural and Food Policy; Farm Management;

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