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



Table 5. Impacts of Market Institutions and Government Policies on

Farmers’ Optimal Risk Management Portfolio

Alternative Portfolios

Hedge Ratio

Crop Ins.
Coverage

0% Premium

Loading

30% Premium

Loading

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

Note: The base portfolio is the portfolio that includes all risk management tools, i.e. H & CI & G(DP, LDP, CCP).

49



More intriguing information

1. Cultural Diversity and Human Rights: a propos of a minority educational reform
2. Geography, Health, and Demo-Economic Development
3. Update to a program for saving a model fit as a dataset
4. Food Prices and Overweight Patterns in Italy
5. The name is absent
6. Mergers under endogenous minimum quality standard: a note
7. Ultrametric Distance in Syntax
8. The name is absent
9. Firm Closure, Financial Losses and the Consequences for an Entrepreneurial Restart
10. Eigentumsrechtliche Dezentralisierung und institutioneller Wettbewerb