EVALUATING RISK MANAGEMENT STRATEGIES FOR NON-IRRIGATED SMALL GRAIN PRODUCERS

Risk management strategies (market and insurance based) are evaluated for selected small grain producers in the Pacific Northwest using expected utility maximization. Equivalent variation (EV) compares alternative risk management portfolios to cash sales under specified restrictions and conditions. Resulting EV's are strongly influenced by government payments, and hedging-based strategies are not used when counter cyclical payments are included in government programs. Optimum risk management portfolios include extensive coverage by insurance-based products only when such products have premiums that are heavily subsidized, or have premiums with no significant expense load.


Issue Date:
2003
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/22257
PURL Identifier:
http://purl.umn.edu/22257
Total Pages:
24
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2020-10-28

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