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

  • Jan Wojciechowski (a1), Glenn C. W. Ames (a1), Steven C. Turner (a1) and Bill R. Miller (a1)

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.

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