Heterogeneity and Distributional Form of Farm‐Level Yields

Claassen, Roger; Just, Richard E.

doi:10.1093/ajae/aaq111

Cited by 56 publications

(35 citation statements)

References 27 publications

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“…Comparable yield distribution for the entire meta-database herein analyzed was previously documented ( Just and Weninger, 1999;Claassen and Just, 2011;Assefa et al, 2014). However, there are studies which argued that crop yields (at county scale) were not normally distributed, but instead were negatively or positively skewed (Harri et al, 2009;Hennessay, 2009).…”

Section: Discussionmentioning

confidence: 72%

Yield Responses to Planting Density for US Modern Corn Hybrids: A Synthesis‐Analysis

et al. 2016

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Identifying an optimal plant density is a critical management decision for corn (Zea mays L.) production. The main objectives of this study were to: (i) investigate the grain yield responses to plant density (yield–density relationship), (ii) identify best fitted yield–density response curves, and (iii) explore genotype (G) × environment (E) interaction effect on yield–density response models. Analysis was conducted on meta‐data (124,374 observations) gathered from 22 US states and 2 Canadian provinces, diverse sites (E), for years from 2000–2014 on multiple hybrids (G). Yield data were further grouped into four yield environments (low [LY], <7 Mg ha−1; medium [MY], 7–10 Mg ha−1; high [HY], 10–13 Mg ha−1; and very high [VHY], >13 Mg ha−1 yielding groups). Primary outcomes from this analysis were: (1) strong G × E interaction; (2) a quadratic model best fitted yield–density relationship; (3) four contrasting yield–density responses identified as dominant in each yield productivity environment, i.e., a declining, a constant, an increasing, and ever‐increasing type; (4) the yield productivity environment varied for the different corn comparative relative maturity (CRM) groups, i.e., the LY environment for long‐maturing hybrids matched with a MY or HY environment for short maturing hybrids; and (5) maximum yielding plant density (MYPD) was lower but maximum yield was greater for long‐ versus short‐maturing hybrids. In summary, optimal plant density should be decided based on detailed G × E analysis of production conditions that include factors such as CRM, yield productivity environment (weather–soil × management practices), and site information.

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Section: Discussionmentioning

confidence: 72%

Yield Responses to Planting Density for US Modern Corn Hybrids: A Synthesis‐Analysis

et al. 2016

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“…This, for instance, is also the case in agricultural yield insurance applications (e.g. area yield insurance), which either frequently use aggregated (at least county-level) data or rely on observations from a few single farms (Claassen and Just, 2011). Regarding these applications, Cooper et al (2009) point out that the aggregation of crop yields causes errors in the risk assessment for farm-level analysis.…”

Section: Introductionmentioning

confidence: 99%

Hedging weather risk on aggregated and individual farm‐level

Heimfarth

Finger

Mußhoff

2012

Agricultural Finance Review

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Purpose -Since the 1990s, there has been a discussion about the use of weather index-based insurance, also called weather derivatives, as a new instrument to hedge against volumetric risks in agriculture. It particularly differs from other insurance schemes by pay-offs being related to objectively measurable weather variables. Due to the absence of individual farm yield time series, the hedging effectiveness of weather index-based insurance is often estimated on the basis of aggregated farm data. The authors expect that there are differences in the hedging effectiveness of insurance on the aggregated level and on the individual farm-level. The purpose of this paper is to estimate the magnitude of bias which occurs if the hedging effectiveness of weather index-based insurance is estimated on aggregated yield data. Design/methodology/approach -The study is based on yield time series from individual farms in central Germany and weather data provided by the German Meteorological Service. Insurance is structured as put-option on a cumulated precipitation index. The analysis includes the estimation of the hedging effectiveness of insurance on aggregated level and on individual farm-level. The hedging effectiveness is measured non-parametrically regarding the relative reduction of the standard deviation and the value at risk of wheat revenues. Findings -Findings indicate that the hedging effectiveness of a weather index-based insurance estimated on aggregated level is considerably higher than the realizable hedging effectiveness on the individual farm-level. This refers to: hedging effectiveness estimated on the aggregated level is higher than the mean of realized hedging effectiveness on the individual farm-level and almost every evaluated individual farm in the analysis realizes a lower hedging effectiveness than estimated on the aggregated level of the study area. Nevertheless, weather index-based insurance designed on the aggregated level can lead to a notable risk reduction for individual farms. Originality/value -To the authors' knowledge, this paper is the first that analyzes the influence of crop yield aggregation with regard to the hedging effectiveness of weather index-based insurance.

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“…; Babcock and Hennessy ; Smith and Goodwin ). It has also been shown that subsidized insurance incentivizes producers to grow crops in places where they might not have grown them otherwise, commonly referred to as the extensive margin effect (see Wu ; Claassen and Just ; Miao et al. ).…”

Section: Unintended Consequences Of Brm Subsidizationmentioning

confidence: 99%

Canadian Business Risk Management: Private Firms, Crown Corporations, and Public Institutions

Ker

Barnett

Jacques

et al. 2017

Canadian J Agri Economics

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This paper considers the current and possible institutions (programs, policies, participants, etc.) that govern public Business Risk Management (BRM) in Canada. This is an important policy topic for two reasons: BRM spending accounts for the vast majority of public monies funneled to Canadian agricultural producers and the upcoming Canadian Agricultural Partnership includes a mandated BRM review and thus presents an opportunity to change these institutions in meaningful ways. We pay particular attention to the rhetoric surrounding greater involvement of private insurance, the lack of rhetoric regarding the use of crown corporations, and issues of subsidization. We conclude with policy recommendations favoring commodity‐specific revenue versus whole‐farm net margin insurance, a possible reduction in subsidy levels, and a call to reconsider the role of crown corporations. We also make programming recommendations regarding the discontinued use of private reinsurance, a reduction in the level of program reserves, and greater transparency. Ce document examine les institutions actuelles et potentielles (programmes, politiques, participants, etc.) qui gouvernent la gestion des risques d'entreprises (GRE) au Canada. Deux raisons rendent important ce sujet politique : les dépenses liées á la GRE totalisent la grande majorité des fonds publics accordés aux producteurs agricoles, et le futur cadre politique agricole offre l'occasion de modifier ces institutions de manière significative. Nous portons une attention particulière á la rhétorique entourant l'implication plus soutenue des assurances privées, á l'absence de rhétorique au sujet de l'utilisation de sociétés d'État, et aux enjeux de subvention. Nous concluons avec des recommandations politiques favorisant les assurances de revenus provenant spécifiquement de produits agricoles versus celles de la marge nette de l'exploitation globale, une potentielle réduction des niveaux de subvention, et un appel á tenir compte du rôle des sociétés d'État. Nous proposons aussi des recommandations de programmation concernant l'arrêt de l'utilisation des réassurances privées, une réduction du niveau des programmes de réserve, et une transparence accrue.

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Heterogeneity and Distributional Form of Farm‐Level Yields

Cited by 56 publications

References 27 publications

Yield Responses to Planting Density for US Modern Corn Hybrids: A Synthesis‐Analysis

Yield Responses to Planting Density for US Modern Corn Hybrids: A Synthesis‐Analysis

Hedging weather risk on aggregated and individual farm‐level

Canadian Business Risk Management: Private Firms, Crown Corporations, and Public Institutions

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