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Managing risk in agriculture through hedging and crop insurance what does a national survey reveal

Managing risk in agriculture through hedging and crop insurance what does a national survey reveal Crop insurance and hedging are two risk management strategies used by farmers to manage risk. Using a discrete choice model and farmlevel data, this study investigates the factors influencing farmers use of hedging and crop insurance as risk management strategies. In the case of crop insurance, results indicate that level of education, participation in other risk management strategies such as renting land, commodity programs, spreading sales over the year, and controlling debt are positively related to a farmers decision to purchase crop insurance. For the hedging model, results suggest education, offfarm income, forward contracting sales of crops and livestock, and computer use are positively related to a farmers articipation in hedgingfutures markets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Agricultural Finance Review Emerald Publishing

Managing risk in agriculture through hedging and crop insurance what does a national survey reveal

Agricultural Finance Review , Volume 62 (2): 14 – Nov 1, 2002

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0002-1466
DOI
10.1108/00214930280001134
Publisher site
See Article on Publisher Site

Abstract

Crop insurance and hedging are two risk management strategies used by farmers to manage risk. Using a discrete choice model and farmlevel data, this study investigates the factors influencing farmers use of hedging and crop insurance as risk management strategies. In the case of crop insurance, results indicate that level of education, participation in other risk management strategies such as renting land, commodity programs, spreading sales over the year, and controlling debt are positively related to a farmers decision to purchase crop insurance. For the hedging model, results suggest education, offfarm income, forward contracting sales of crops and livestock, and computer use are positively related to a farmers articipation in hedgingfutures markets.

Journal

Agricultural Finance ReviewEmerald Publishing

Published: Nov 1, 2002

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