Weather‐based instruments in the context of whole‐farm risk management

Agricultural Finance Review

Volumn 68, Issue 1, 2008, Pages 119-133

  Berg, Ernst ^a   Schmitz, Bernhard ^b  

^a UNIVERSITY OF BONN   (Germany)

^b K+S KALI GmbH   (Germany)

Author keywords

Downside risk; Portfolio optimization; Risk management; Risk value models; Weather derivatives

Indexed keywords

EID: 78650607279     PISSN: 00021466     EISSN: 20416326     Source Type: Journal    
DOI: 10.1108/00214660880001222     Document Type: Article

References (26)

1. Berg, E. "Risk Response of Farmers to the Change in the European Agricultural Policy." In Risk Management Strategies in Agriculture- Slate of the Art and Future Perspective. eds., R. B. M. Huime. J. B. Hardaker. and A. A. Dljkftulzcn, pp. 285-296. Wageningen. Netherlands: Mansholt Studies. 1997.
2. Berg, E. "Integriertes Rteikomanagement- Notwendigkeit und Konzepte für die Landwirtschaft." In Agrarökonomie tm Wandel, ed., J. Dettmer. pp. 53-67. Bonn. Germany: Universität Bonn-ILB. 2005.
3. Berg. E., B. Schmitz, and M. Starp. "Weather Derivatives as an Instrument to Hedge Against the Risk of High Energy Cost in Greenhouse Production." Contributed paper at the 26th International Conference of the IAAE, Gold Coast, Australia. 12-18 August 2006. Online at AgEcon Search (http://agecon. llb.umn.edu/).
4. Berg. E., B. Schmitz, M. Starp, and H. Trenkel. "Weather Derivatives as a Risk Management Tool In Agriculture." In Income Stabilization in Agriculture: The Role of Public Policies, eds., C. Cafìero and A. Ciofft pp 379-396. Naples: Edizioni Scientifiche Italiane. 2006.
5. Berg, E., and M. Starp. "Farm-Level Risk Assessment Using Downside Risk Measures." Contributed paper at the 26th International Conference of the LAAE, Gold Coast. Australia. 12-18 August 2006. Online at AgECon Search thttp://agecon,lib.umn.edu/J.
6. Bohmstedt, G. W., and A. S. Goldberger. "On the Exact Covariance of Products of Random Variables." J. Amer. Statis. Assn. 64(1969): 1439-1442.
7. Collins. R. A. "Toward a Positive Economic Theory of Hedging." Amer. J. Agr. Econ. 79(1997):488-499.
8. Fishburn, P. C. "Mean-Risk Analysis with Risk Associated with Below-Target Returns." Amer. Econ. Rev. 76.2(1977): 116-126.
9. Hardaker. J. B., R. B. M. Huime. J. R. Anderson, and G. Lien. Coping with Risk in Agriculture. Cambridge. MA: CABI Publishing, 2004.
10. Hartung, J. Statistik: Lehr- und Handbuch der angewandte Statistik. Munich: Oldenbourg. 1998.
11. Jorton. P. Value-at-Risk: The New Benchmark for Controlling Market Risk. New York: McGraw-Hill. 1997.
12. Manfredo. M. R., and R. M. Leuthold. "Value-at-Risk Analysts: A Review and the Potential for Agricultural Applications." Rev. Agr. Econ. 21(1999): 99-111.
13. Musshoff, O., N. Hirschauer, and M. Odening. "Portfolio Effects and the Willingness to Pay for Weather Insurances." Paper presented at the EAAE 101st Seminar. Berlin. July 2007. [Paper published In this Journal issue.]
14. Musshoff, O., M. Odening. and W. Xu. "Zur Reduzierung niederschlagsbecdingter Produktionsrisiken mit Wetterderivaten." Working Paper No. 73/2005. Wirtschafts-und Sozialwissenschaften an der Humboldt-Universität. Berlin. 2005.
15. Robison, L. J, and P. J. Barry. The Competitive Firm's Response to Risk. New York: Macmillan Co., 1987.
16. Roth. M., C. Ulardic. and J. Trueb. "Critical Success Factors for Weather Risk Transfer Solutions In ihe Agricultural Sector: A Reinsurer"s View." Paper presented at the EAAE 101 st Seminar. Berlin. July 2007. (Paper published in this Journal Issue.)
17. Sarin, R. K, and M. Weber. "Risk-Value Models." Eur. J. Operational Res. 70(1993):135-149.
18. Schmitz, B. "Wetterderivat«: als Instrument des Risikomanagements landwirtschaftlicher Betriebe." Unpub. Ph.D. diss., Bonn. Germany. 2007. Online, Available at http://hss.ulb. uni-bonn.de/diss_online/landw_fak/ 2007/schmltz_bemhard.
19. Schncewelss, H. Entscheidungskriterien bei Risiko. Ökonometrie und Unternehmensforschung VI. Heidelberg. Germany: Springer-Verlag. 1967.
20. Starp, M. Integriertes Risikomanagement im fandtuirtschq/tfichen Betrieb. Betriebswirtschaftliche Schriften. Heft 166. Berlin: Duncker & Humblot. 2006.
21. Turvey, C. G. "Weather Derivatives for Specific Event Risks ln Agriculture." Rev. Agr. Econ. 22.2(2001):333-351.
22. Turvey, C. G., and T. G. Baker. "A Farm- Level Financial Analysis of Farmers" Uses of Futures and Options Under Alternative Farm Programs." Amer. J. Agr. Econ. 72(1990):946-957.
23. Turvey, C. G., A J. Weerslnk. and S.-H. C. Chiang. The Feasibility of Ice Wine Insurance for Ontario Ice Wine Producers." Amer. J. Agr. Econ. 88.3(2006):696-709.
24. Vedenov, D. V., and B. J. Barnett. "Efficiency of Weather Derivatives as Primary Crop Insurance Instruments." J. Agr. and Resour. Econ. 29.3(December 2004):387-403.
25. Woodard, J. D., and P. Garcia. "Basis Risk and Weather Hedging Effectiveness." Paper presented at the EAAE 101st Seminar, Berlin. July 2007a. IPaper published In this Journal issue.
26. Woodard, J. D., and P. Garcia. ""Spatial Aggregation and Weather Risk Management." Paper presented at the American Agricultural Economics Association Annual Meeting. Portland. OR, 29 July-1 August 2007b. Online at AgEcon Search (http://agecon.llb. umn.edu/).