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Marketing of Cotton Fiber in the Presence of Yield and Price Risk

Published online by Cambridge University Press:  28 April 2015

Jan Wojciechowski ,
Glenn C. W. Ames ,
Steven C. Turner  and
Bill R. Miller
Jan Wojciechowski
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, Georgia 30602-7509
Glenn C. W. Ames
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, Georgia 30602-7509
Steven C. Turner
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, Georgia 30602-7509
Bill R. Miller
Affiliation:
Department of Agricultural and Applied Economics, University of Georgia, Athens, Georgia 30602-7509
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Abstract

An expected-utility model and a chance-constrained linear programming model were used to analyze four marketing strategies and seven crop insurance alternatives for cotton marketing in Georgia. The results suggest that existing marketing tools and insurance alternatives can be used to reduce cotton producers' revenue risk. The optimal level of yield and price insurance coverage depends on an individual producer's risk aversion.

Keywords

crop insurancemarketing strategiesrisk aversion
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 3 , December 2000 , pp. 521 - 529
Copyright
Copyright © Southern Agricultural Economics Association 2000

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