Table 6. Evaluation of Risk Management Instruments
Alternative Instruments |
$0.017/bushel Futures Transaction Cost |
$0/bushel Futures Transaction Cost | ||
$ 0% premium loading |
30% premium loading |
$ 0% premium loading |
30% premium loading | |
Gov’t programs (total, $) |
57.47 |
57.47 |
57.00 |
57.00 |
CCP |
13.46 |
13.46 |
13.29 |
13.29 |
LDP |
14.24 |
14.24 |
13.94 |
13.94 |
DP |
29.78 |
29.78 |
29.77 |
29.77 |
Crop Insurance (MPCI, $) |
4.73 |
4.60 |
5.20 |
5.07 |
Hedging ($) |
0.08 |
0.08 |
0.48 |
0.48 |
50
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