Using a volatility spillover model, we find evidence of significant spillovers from crude oil prices to corn cash and futures prices, and that these spillover effects are time‐varying. Results reveal that corn markets have become much more connected to crude oil markets after the introduction of the Energy Policy Act of 2005. Furthermore, when the ethanol–gasoline consumption ratio exceeds a critical level, crude oil prices transmit positive volatility spillovers into corn prices and movements in corn prices are more energy‐driven. Based on this strong volatility link between crude oil and corn prices, a new cross‐hedging strategy for managing corn price risk using oil futures is examined and its performance is studied. Results show that this cross‐hedging strategy provides only slightly better hedging performance compared with traditional hedging in corn futures markets alone. The implication is that hedging corn price risk in corn futures markets alone can still provide relatively satisfactory performance in the biofuel era. © 2010 Wiley Periodicals, Inc. Jrl Fut Mark

Citrus huanglongbing (HLB), or greening, is the most destructive citrus disease worldwide and is threatening the sustainability of the industry in major citrus-growing regions. Various treatments have been proposed in the literature to manage the disease. We review such literature and conduct an economic analysis based on the reported treatment effects on fruit yield and quality to identify cost-effective management strategies. Our results suggest that, among the treatments we reviewed, broad-spectrum insecticides provide the only cost-effective strategy for mitigating the impact of the disease. Our findings and discussion should help growers, policymakers, and other stakeholders make informed decisions in the search for effective, sustainable, and environmentally friendly treatments and policies against HLB.

Registered fumigants tend to provide poor or inconsistent Cyperus rotundus L. and broadleaf weed control. Dimethyl disulfide (DMDS) is generally considered more effective on Cyperus species than chloropicrin (Pic) or 1,3-dichloropropene (1,3-D) whereas metam potassium is generally considered more effective on broadleaf weeds. The objective of the experiment was to determine if the use of metam potassium in conjunction with other fumigants would enhance C. rotundus and broadleaf weed control in tomato. 1,3-D+Pic caused low level crop damage in spring 2014, increased crop height in fall 2014, and had no effect on crop growth in spring 2015. In every case, differences in crop damage or height did not result in yield differences. The most effective C. rotundus control was achieved with 131 kg ha-1 1,3-D + 200 kg ha-1 Pic, 340 kg ha-1 of DMDS + 90 kg ha-1 Pic, or 392 kg ha-1 of DMDS + 195 kg ha-1 metam potassium. Metam potassium improved C. rotundus control when applied alone or in conjunction with DMDS but not when applied in conjunction with DMDS+Pic or 1,3-D+Pic. All fumigants evaluated reduced broadleaf weed density compared with non-fumigated treatments. No consistent differences in total revenues or net benefit were observed among fumigants when applied without metam potassium. The use of metam potassium increased costs per hectare although DMDS+metam potassium was cheaper then 1,3-D+Pic but not DMDS+Pic. DMDS+Pic had the lowest estimated total cost of the three best C. rotundus treatments.

We hypothesize that earnings downside risk, capturing the expectation for future downward operating performance, contains distinct information about firm risk and varies with cost of capital in the cross section of firms. Consistent with the validity of the earnings downside risk measure, we find that, relative to low earnings downside risk firms, high earnings downside risk firms experience more negative operating performance over the subsequent period, are more sensitive to downward macroeconomic states, and are more strongly linked to earnings attributes and other risk-related measures from prior research. In line with our prediction, we also find that earnings downside risk explains variation in firms' cost of capital, and that this link between earnings downside risk and cost of capital is incremental to several earnings attributes, accounting and risk factor betas, return downside risk, default risk, earnings volatility, and firm fundamentals. Overall, this study contributes to accounting research by demonstrating the key valuation and risk assessment roles of earnings downside risk derived from firms' financial statements, also shedding new light on the link between accounting and the macroeconomy.