The most useful and practical strategy available for reducing variability of net farm income is ascertained. Of the many risk management tools presently available, five of the most commonly used are simultaneously incorporated in an empirically tested model. Quadratic programming provides the basis for decisionmaking in risk management wherein expected utility is assumed to be a function of the mean and variance of net income. Results demonstrate that farmers can reduce production and price risks when a combination strategy including a diversified crop production plan and participation in the futures market and the Federal Crop Insurance Program (FCIP) is implemented.

This study examines the economic feasibility of storing southeastern U.S. Red Delicious apples under various circumstances. Circumstances encompassed type of storage, potential market share in the storage periods, perceived level of quality, and opportunity cost of storage. Reactive programming was used to allocate shipments throughout the harvest and storage periods. Except for apples harvested in August, storage was found to be economically feasible under all situations studied. The greatest economic benefit to producers was shown to come from the synergistic effect of storage and improvement in perceived quality.

Failure of land markets to account for environmental amenity benefits may lend support to public policies to protect agricultural land. The contingent valuation method is employed to estimate willingness to pay for such amenities in Greenville County, South Carolina. Marginal household amenity benefits were estimated at $.06 per thousand acres using a payment card in a mail survey with 53 percent response. Bid payment vehicle was found not to significantly influence bids received. The informational structure of the contingent market was found to influence valuation responses, reinforcing the hypothesis that respondents react to alternative contingent market structures. The relationship between contingent market structure and directional effects upon responses is an important area for future research.