Intertemporal Risk Management Decisions of Farmers under Preference, Market, and Policy Dynamics

Alternative Portfolios

Hedge Ratio

Crop Ins.
Coverage

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Year1

Year2

Year3

Year4

Year5

Year1-5

CE($)

CE($)

With Transaction Cost ($0.017/Bushel)

H & CI & G(DP, LDP, CCP)

0.25

0.31

0.32

0.32

0.26

0.85

62.28

62.15

H & CI & G(DP, LDP)

0.39

0.44

0.44

0.44

0.38

0.85

48.82

48.69

H & CI & G(DP)

0.28

0.57

0.65

0.72

0.74

0.85

34.58

34.45

H & CI

0.32

0.59

0.66

0.72

0.74

0.85

4.81

4.68

CI & G(DP, LDP, CCP)

--

--

--

--

--

0.85

62.20

62.07

Without Transaction Cost ($0/bushel)

H & CI & G(DP, LDP, CCP)

0.42

0.39

0.37

0.35

0.27

0.85

62.68

62.54

H & CI & G(DP, LDP)

0.61

0.54

0.50

0.48

0.39

0.85

49.39

49.26

H & CI & G(DP)

0.78

0.79

0.77

0.79

0.77

0.85

35.44

35.31

H & CI

0.78

0.79

0.77

0.79

0.77

0.85

5.67

5.54

CI & G(DP, LDP, CCP)

^B ^B

^B ^B

^B ^B

^B ^B

^B ^B

0.85

62.20

62.07