11
Table 1. Sample Variance-Covariance Matrix Used to Estimate the Cash Prices and Yields
|
∆pc ∆yc ∆ps ∆ys | |
|
∆pc |
0.047357 -0.01915 0.047691 0.035028 -0.01527 0.037954 -0.01369 0.023965 -0.01025 0.019965 |
Table 2. Implied Sample Correlation Coefficient Matrix
|
∆pC ∆yc ∆ps ∆ys | |
|
∆pC |
1.000 -0.403 1.000 0.826 -0.359 1.000 -0.445 0.777 -0.372 1.000 |
Table 3. Parameter Values Used in the Simulations
|
Corn |
Soybeans | |
|
Expected Price ($/Bu): |
2.ÎÔ |
5.79 |
|
Expected Yields (Bu/Acre) |
131.08 |
42.16 |
|
Cash-Futures Correlations: | ||
|
- price |
0.973 |
0.995 |
|
- yield |
0.621 |
0.876 |
|
Proportion of acreage in the farm |
0.58 |
0.42 |
|
Target price ($/Bu) |
2.75 |
- |
|
Loan rate ($/Bu) |
2.00 |
5.00 |
|
ARP (%) |
10 |
- |
|
Flex (%) |
15 |
- |
|
Revenue assurance level |
0.70 |
0.70 |
|
Costs per acre ($) |
155.20 |
81.04 |
(Excluding land rents)