bluuebunny/crossref_metadata_2025 huggingface dataset:
Evaluating the effects of asymmetric information in a model of crop insurance
Authors: Esuola Adeyemi , Hoy Michael , Islam Zahirul , Turvey Calum G.
Published: June 2010

Asymmetric information in the form of moral hazard and adverse selection can result in sizable program costs for government‐provided crop insurance plans. We present a methodology and illustrative simulations to show how these two types of information problems interact in a way to create program costs for the providers of crop insurance. Our methodology allows us to ascertain the relative contributions to program costs of these two sources of asymmetric information. The exercise is useful in pointing out directions for future study seeking ways to improve the design of crop insurance plans.
Evaluating risk management strategies for Pacific Northwest grain producers
Authors: Makus Larry D. , Holly Wang H. , Chen Xiaomei
Published: June 2010

A utility maximization model is used to assess alternative risk management portfolios of Pacific Northwest non‐irrigated grain producers using three rotational practices. Risk management tools include hedging with wheat futures, yield insurance, two revenue insurance products (with and without price replacement), and government programs under the 2002 Food Security and Rural Investment (FSRI) Act. Government programs account for the primary risk management value of all the analyzed portfolios. The revenue insurance product with price replacement is preferred when available, and yield insurance is preferred over revenue insurance without price replacement. Hedging is not extensively utilized unless government programs are eliminated.
A Bayesian approach to German agricultural yield expectations
Authors: Krause Jette
Published: June 2010

Agricultural yields depend on an encompassing set of technical and environmental factors. The development of such factors often is not fully observable, and their interactions and impacts on yields have not been completely understood. This paper proposes a Bayesian method for forming agricultural yeidl expectations based on past yields. With this method, the development of expectations on yield trend and variability over time is retrace, and expectations for the future are derived. German winter wheat, corn, and aggregated cereal yield data from 1950 through 2006 on the national scale are used for updating. It is shown that the expectation that yields follow a stable positive linear trend with increasing variance become the dominant hypothesis by 1990, and gains a final weight of more than 99 per cent for all crops considered.
Portfolio effects and the willingness to pay for weather insurances
Authors: Musshoff Oliver , Hirschauer Norbert , Odening Martin
Published: June 2010

Since the mid‐1990s, agricultural economists have discussed the relevance of index‐based insurances, also called “weather derivatives”, as hedging instruments for volumetric risks in agriculture. Motivated by the question of how weather derivatives should be priced for agricultural firms, this paper describes an extended risk‐programming model which can be used to determine farmers’ willingness to pay (demand function) for weather derivative’s farm‐specific risk reduction capacity and the individual farmer’s risk acceptance. Applying it to the exemplary case of a Brandenburg farm reveals that even a highly standardized contract which is based on the accumulated rainfall at the capital’s meteorological station in Berlin‐Tempelhof generates a relevant willingness to pay. Our findings suggest that a potential underwriter could even add a loading on the actuarially fair price which exceeds the level of traditional insurances. Since translation costs are low compared to insurance contracts, this finding indicates there may be a relevant trading potential.
Weather‐based instruments in the context of whole‐farm risk management
Authors: Berg Ernst , Schmitz Bernhard
Published: June 2010

Recent and presumable future developments tend to increase the risks associated with farming activities. These include climate risks, which have always played an important role in farming. Weather‐based instruments can be valuable tools to reduce the risk associated with unfavourable climate events. However, a number of factors could limit the hedging effectiveness of these tools. These factors include basis risk, the impacts of remaining price uncertainty, and diversification effects. This paper addresses the influence of each of these factors. In the final section, an integrated approach for a comprehensive assessment of weather derivatives and other hedging instruments is proposed that is based on the concept of portfolio optimization.
The pricing, structure, and function of weather‐linked bonds, mortgages, and operating credit
Authors: Turvey Calum G.
Published: June 2010

This paper outlines approaches to valuating weather‐linked bonds, mortgages, and operating lines of credit. Using historical data from weather stations in Adrmore, Oklahoma, and Ithaca, New York, indemnities and insurance premiums are computed for specific‐event rainfall insurance. The main contribution of the paper is the development of new and accurate formulae for determining the coupon rates on weather‐linked bonds and the interest rates on weather‐linked mortgages and lines of credit. The empirical aspects of the paper indicate that linking weather risk to debt may be very costly if the risks are common, but the risk premiums on rare or low‐frequency weather risks can be very manageable.
Improving humanitarian response to slow‐onset disasters using famine‐indexed weather derivatives
Authors: Chantarat Sommarat , Turvey Calum G. , Mude Andrew G. , Barrett Christopher B.
Published: June 2010

This paper illustrates how weather derivatives indexed to forecasts of famine can be designed and used by operational agencies and donors to facilitate timely and reliable financing, for effective emergency response to climate‐based, slow‐onset disasters such as drought. We provide a general framework for derivative contracts, especially in the context of index insurance and famine catastrophe bond, and show how they can be used to complement existing tools and facilities in drought risk financing through a risk‐layering strategy. We use the case of arid lands of northern Kenya, where rainfall proves a strong predictor of widespread and severe child wasting, to provide a simple empirical illustration of the potential contract designs.
Challenges for use of index‐based weather insurance in lower income countries
Authors: Skees Jerry R.
Published: June 2010

This article offers some perspective on the progress and challenges of managing catastrophic weather risk in lower income countries through the use of index insurance. Innovations in insurance for natural disaster risk are critically important to help the rural poor improve their lives and to contribute to the overall economic growth in lower income countries. By reviewing lessons learned from various index insurance projects, several conclusions are made about how best to approach weather risk management to benefit the livelihoods of the rural poor. It is important to recognize the limitations of index insurance and that it is not a substitute for crop insurance. However, using index insurance to address catastrophic risk can serve as the foundation for the development of broader financial services by removing one of the major constraints to market development. This in turn can offer households more effective strategies for consumption smoothing in the face of different sources and magnitudes of risk.
Customer segmentation perceptions of farm credit associations
Authors: Briggeman Brian C. , Kenkel Philip
Published: June 2010

In 2006, the Farm Credit System released a report about the general economic and financial needs to rural America entitled HORIZONS. The objective of this study is to build on the HORIZONS project by exploring the opinions of seven Oklahoma Farm Credit Associations’ senior officials and load officers on the financial characteristics of different borrower types, their associations’ competitive advantage in attracting and retaining these borrowers, and the potential load volume growth for each borrower type. The results of this research show that senior officials are more positive than are loan officers about the financial characteristics of nontraditional borrowers. However, both groups agree that these borrowers provide the best opportunity for load volume growth.
Financing strategies under combined capital structure theories: a farm‐level simulation analysis
Authors: Zhao Jianmei , Barry Peter J. , Schnitkey Gary D.
Published: June 2010

A stochastic, multi‐period simulation model is developed based on the prevalent capital structure theories, in searching for and identifying an optimal combination of related financing strategies. The model reflects both conceptual and empirical implications of the pecking order, trade‐off and signalling theories on farm business financing, investment, and expansion process. The comparisons of simulation output indicate that farm businesses could expand at a moderate speed accompanied by financial health when they concurrently adopt these financing tactics. Pecking order financing benefits short‐term financial management, trade‐off strategy effectively adjust farm capital structure, and the signaling theory enables the adoption of risk‐adjusted interest rate policies between the farm borrower and the lender.
Effects of commercial bank structure and other characteristics on agricultural lending
Authors: Bard Sharon K. , Barry Peter J. , Ellinger Paul N.
Published: June 2010

A case loan request methodology evaluated how changes in commercial banking structure are influencing credit availability and terms for selected farm business types. Tobit and OLS regressions were used to assess bank characteristic effects on loan amount and rate, and a paired comparisons approach evaluated credit term differences among borrower types. Loan amounts were not significantly influenced by bank characteristics, and loan rates were significantly affected by bank characteristics sporadically. Some differentiation in credit terms among the demographic groups occurred. These results showed no overwhelming evidence in favor of or against the trend toward commercial bank consolidation as it impacts agricultural lending.
Producer behavior in the presence of an income stabilization program
Authors: Stokes Jeffrey R. , Coble Keith H. , Dismukes Robert
Published: June 2010

Passage of the 1996 Farm Bill marked a dramatic departure in federal farm policy as the longstanding deficiency payment program was replaced with non‐risk responsive transition payments. In light of the departure, subsidized savings has been proposed as a mechanism to provide risk protection to agricultural producers. Using Canada’s National Income Stabilization Account (NISA) program as an example of a subsidized savings program, a stochastic programming model of income stabilization is developed. The model is then used to investigate the optimizing behavior of a typical Midwestern crop producer. The results suggest a fair amount of program design flexibility exists, and that the government can use this flexibility to stimulate initial and continual participation while minimizing capital outlays.
Choice among leasing contracts in farm real estate
Authors: Sotomayor Narda L. , Ellinger Paul N. , Barry Peter J.
Published: June 2010

The leasing market for Midwestern farmland is experiencing greater reliance on cash versus share leases and increased competition for leased acreage. This study identifies significant factors associated with the use of cash leases relative to share leases, and with the associated levels of cash rent. A greater likelihood of cash leases is significantly related to higher income variability, lower soil quality, smaller tracts of leased acreage, shorter relationships with landlords, and to farmers with larger net worths and higher debt‐to‐asset ratios. Levels of cash rent are associated primarily with differences in soil productivity, tract size, and net worth.
Crop enterprise diversification and specialty crops
Authors: Popp Michael , Rudstrom Margot
Published: June 2010

A set of crop alternatives ranging from traditional, low risk to less common and/or high risk crops is ranked according to their impact on overall risk using two measures. These two measures would aid cropping decisions by providing (1) a priori guidance on overall risk impact, and (2) a means to reduce the need for complex E‐V frontier estimation. Results suggest the number of crops that may depend on the riskiness of crop alternatives form which a producer chooses. Some reductions in necessary calculations for E‐V analysis are therefore suggested.
Agricultural and nonagricultural bank productivity: A DEA approach
Authors: Dias Weeratilake , Helmers Glenn A.
Published: June 2010

Nonparametric data envelopment analysis is used to determine productivity and efficiency of agricultural and nonagricultural banks categorized into six different asset size groups. An output‐oriented Malmquist index is estimated and decomposed into its components to provide a comparison of performance over the 1981 1991 study period. Results show the primary source of productivity improvements for larger banks of both types has been technical changes or innovations. Small banks of both types have derived competitive strength from increased efficiency gains or catching up with frontier banks. Competitive pressure brought in by restructuring of the agricultural credit market has caused increased volatility in productivity growth, showing negative total factor productivity for the study period.
Characteristics of unsuccessful versus successful agribusiness loans
Authors: Gallagher Richard L.
Published: June 2010

Research on agribusiness loan success and failure has been limited, and has typically adopted the nonagricultural business approach of using financial ratios to predict loan success, with success rates generally ranging from 60 to 80%. This study uses primary loan data to test the financial and nonfinancial characteristic differences between unsuccessful and successful agribusiness loans. Previous work is augmented by accounting for nonfinancial characteristics, including lender and agribusiness manager experience that resulted in an improved model prediction success rate of 97.5%. A unique result is the identification of a significant combined experience variable comprised of the loan officer’s experience and the agribusiness manager’s experience. Findings further suggest that agribusiness lenders could benefit from incorporating experience into the loan portfolio management process.
A comparison of criteria for evaluating risk management strategies
Authors: Gloy Brent A. , Baker Timothy G.
Published: June 2010

Several criteria that produce rankings of risk management strategies are evaluated. The criteria considered are expected return, value at risk, the Sharpe ratio, the necessary condition for first‐degree stochastic dominance with a risk‐free asset, and the necessary condition for second‐degree stochastic dominance with a risk‐free asset. The criteria performed relatively well in that the most desirable strategy under each criterion was always at least a member of the second‐degree stochastic dominance efficient set. There was also a relatively high degree of consistency between the highest ranked strategies under the various criteria. The effectiveness of the criteria increases as decision makers are assumed to be more risk averse and have greater access to financial leverage
Off‐farm investment of farm households: A logit analysis
Authors: Mishra Ashok K. , Morehart Mitchell J.
Published: June 2010

This investigation considers factors affecting off‐farm investment of farm households. A national farm‐level survey was used to evaluate the effects of various farm and operator characteristics on the likelihood of off‐farm investment. Results suggest differences in level of education, age of the operator, off‐farm income, household net worth, leverage, farm size, farm diversification, management skills, and location influence off‐farm investment decisions.
Factors affecting returns to labor and management on U.S. dairy farms
Authors: Mishra Ashok K. , Morehart Mitchell J.
Published: June 2010

The objective of this study was to identify factors that contribute to returns to operators’ labor and management of dairy farms in the U.S. Particular attention is given to the role of education and extension. Operators’ labor and management income (OLMI) is used as a measure of financial success. Regression analysis shows farm size, farm organization, level of education, and participation in extension activities and use of extension agents are important factors influencing OLMI. Further, forward contracting of inputs and other measures for controlling variable costs are also important factors in determining the financial success of dairy farms.
Quantifying the impact of farmer mac prepayment penalties
Authors: Brinch Brian M. , Stokes Jeffrey R.
Published: June 2010

Unlike most residential mortgage‐backed securities, Farmer Mac agricultural mortgage‐backed securities (AMBS) have prepayment penalties. To quantify the impact of prepayment penalties on the cost of funding loans, prepayment behavior, and AMBS value, an analytic AMBS model is developed and numerically solved using pathwise simulation and dynamic programming. The results suggest prepayment penalties currently being used by Farmer Mac reduce AMBS yields considerably relative to not charging prepayment penalties. Presumably, lower yielding AMBS imply more competitive loan pricing. Even with prepayment penalties in place, however, it can be advantageous for profit‐maximizing mortgagors to optimally prepay or even default on agricultural mortgages. The model is used to quantify prepayment and credit risk by valuing the embedded options in mortgages, namely, the right of the mortgagor to prepay and to default.
A temporal comparison of sources of variability in farm household income
Authors: Mishra Ashok K. , El‐Osta Hisham S.
Published: June 2010

Based on two time periods (1995 and 1999), this study examines how much of the variability in total farm household income can be attributed to the variability in net farm income and in off‐farm income sources (such as income from off‐farm businesses, wages and salaries, interest and dividends, and other off‐farm income). Comparisons are also made between participants and nonparticipants in federal commodity programs. Using a normalized variance decomposition approach and data from the Agricultural Resource Management Study (ARMS), variability in the total income of participating households is shown to originate primarily from farming. This is particularly true for large or super‐large farms, and for farms not located in the Northeast. The major source of income variability for nonparticipating households is income from off‐farm sources, especially for cash grain or “other livestock” producers, farms in the small or mid‐size range, and farms located in the South.
Textbook treatments of the lease versus purchase decision
Authors: Miller Stephen E.
Published: June 2010

A survey of textbooks from agricultural economics and finance reveals agreement among the texts that the lease versus purchase decision should be based on a comparison of the present values of the after‐tax cash flows associated with leasing versus purchasing. However, the texts disagree about the discount factor and cash flows that should be used in the analysis. Most agricultural economics texts recommend discounting by the “cost of capital” while most finance texts recommend discounting by the after‐tax cost of borrowed funds. Texts from both agricultural economics and finance disagree about the timing of lease payment tax shields.
Credit risk migration analysis of farm businesses
Authors: Barry Peter J. , Escalante Cesar L. , Ellinger Paul N.
Published: June 2010

The migration approach to credit risk measurement is based on historic rates of movements of individual loans among the classes of a lender’s risk‐rating or credit‐scoring system. This article applies the migration concept to farm‐level data from Illinois to estimate migration rates for a farmer’s credit score and other performance measures under different time‐averaging approaches. Empirical results suggest greater stability in rating migrations for longer time‐averaging periods (although less stable than bond migrations), and for the credit score criterion versus ROE and repayment capacity.
External equity in agriculture: Risk sharing and incentives in a principal‐agent relationship
Authors: Wang Zijun , Leatham David J. , Chaisantikulawat Thanapat
Published: June 2010

The moral hazard problem which obstructs external equity financing of farm businesses is studied using the principal‐agent framework. We assume that the supplier of external equity capital (the principal) cannot directly observe the farmer’s (agent’s) effort, but can observe the random outcome of the effort. We solve for the optimal farm income‐sharing rule that includes an extra share to the agent. The extra share is dependent on the random outcome and is provided to induce optimal effort from the agent. Results show a farmer’s effort is inversely related to the level of risk aversion and the riskiness of the project. Thus, an investor must share more income when a farmer is more risk averse or a project is more risky.
Modeling agricultural loan portfolio risk in a stochastic environment
Authors: Gallagher Richard L.
Published: June 2010

A simulation methodology is applied to the loan loss reserve process of an agricultural lender. Weaknesses of the point‐estimate approach to estimating loan loss reserves are addressed with a “bottom‐up” model. Modeling includes consideration of the producer’s and the lender’s diversification efforts. Implementation of this model will provide the lender a better understanding of the institution’s portfolio risk, as well as the credit risk associated with each loan. This study compares the lender’s loan loss estimates to a distribution of losses with associated probabilities. The comparative results could provide the lender a basis for setting probability levels for determining the regulatory required level of loan loss reserve.
Hedging financial and business risks in agriculture with commodity‐linked loans
Authors: Jin Yufei , Turvey Calum G.
Published: June 2010

One of the particular problems facing agribusiness firms is the relationship between commodity price risk (a source of business risk) and debt repayment ability (a source of financial risk). This study examines the use of commodity‐linked loans applied to agricultural credits. A commodity‐linked loan is a credit instrument whose payoff is contingent on the value of an underlying commodity or portfolio of commodities. The payoff structure includes an option (call or put) rider that provides a payoff if the commodity price rises above or drops below a preset strike price. The payoff is applied directly to the loan. This study introduces the general concept, reviews the literature, and develops and applies a particular model. Simulation results illustrate the interrelationship between options payoffs, strike prices, volatility, and downside financial risk reduction.
Estimating risk‐adjusted interest rates for dairy farms
Authors: Tauer Loren
Published: June 2010

The Capital Asset Pricing Model (CAPM) is used to estimate the cost of equity for each of 62 New York dairy farms that participated in a business analysis program from 1988 through 1997. The estimated betas were statistically less than one for all farms. Risk‐adjusted interest rates ranged from a high of 9.46 per cent to a low of 0.72 per cent, reflecting these low estimated betas.
Business growth strategies of Illinois grain farms
Authors: Escalante Cesar L. , Barry Peter J.
Published: June 2010

This study identifies key strategies employed by Illinois grain farms to prevent the erosion of their equity positions due to significant downturns in commodity prices during the implementation of the 1996 farm bill. The econometric results emphasize the collective importance of revenue enhancement, cost reduction, and capital management strategies. Nonfarm‐related strategies aimed at minimizing equity withdrawals through regulated family living expenditures, as well as supplementing low farm incomes with receipts from nonfarm employment and investments, significantly affect cost value equity growth rates. Moreover, significant financial and asset management strategies include those that minimize the costs of borrowing and maintain high asset productivity levels through elimination of excess farm capacity.
Managing risk in agriculture through hedging and crop insurance: what does a national survey reveal?
Authors: Mishra Ashok K. , El‐Osta Hisham S.
Published: June 2010

Crop insurance and hedging are two risk management strategies used by farmers to manage risk. Using a discrete choice model and farm‐level data, this study investigates the factors influencing farmers’ use of hedging and crop insurance as risk management strategies. In the case of crop insurance, results indicate that level of education, participation in other risk management strategies (such as renting land, commodity programs, spreading sales over the year), and controlling debt are positively related to a farmer’s decision to purchase crop insurance. For the hedging model, results suggest education, off‐farm income, forward contracting sales of crops and livestock, and computer use are positively related to a farmer’s articipation in hedging/futures markets.
Rental spreads for share versus cash leases in Ilinois
Authors: Barry Peter J. , Escalante Cesar L. , Moss LeeAnn E.
Published: June 2010

This study utilizes an expected utility framework to conceptualize the risk‐adjusted valuation of cash versus share leases for farmers and landowners. Farm‐level data then are used to empirically estimate the rental spread between these leases in Illinois, and to econometrically evaluate how these spreads are related to risks and other farm characteristics. The results indicate that non‐risk factors likely are the primary determinants of the magnitude and sign of the rental spread. In particular, high cash rent may be a bidding strategy to control additional leased acreage and thus expand farm size.
A transition finance training program for FSA/USDA employees
Authors: Hanson Gregory D. , Parsons Robert L. , Musser Wesley N.
Published: June 2010

The 1997 merger of two USDA agencies, the Agricultural Stabilization and Conservation Service and the Farmers Home Administration, into the Farm Service Agency created a need for consistent finance training. A highly successful Penn State Cooperative Extension borrower training program was selected to provide national financial training to more than 850 new staff and former loan technicians, and former ASCS staff and district directors. Analysis of workshop evaluations, based on pre‐workshop knowledge levels, identified five distinct clusters of trainees differing substantially in terms of experience, age, knowledge of finance principles, and job classification within FSA. However, evaluations confirmed testing results that the financial training was equally effective across all clusters. A critical result was that the training was successfully adapted to accommodate the distinct needs of each trainee cluster.
Evaluation of risk reductions associated with multi‐peril crop insurance products
Authors: Schnitkey Gary D. , Sherrick Bruce J. , Irwin Scott H.
Published: June 2010

This study evaluates the impacts on gross revenue distributions of the use of alternative crop insurance products across different coverage levels and across locations with differing yield risks. Results are presented in terms of net costs, values‐at‐risk, and certainty equivalent returns associated with five types of multi‐peril crop insurance across different coverage levels. Findings show that the group policies often result in average payments exceeding their premium costs. Individual revenue products reduce risk in the tails more than group policies, but result in greater reductions in mean revenues. Rankings based on certainty equivalent returns and low frequency VaRs generally favor revenue products. As expected, crop insurance is associated with greater relative risk reduction in locations with greater underlying yield variability.
Predictors of farm performance and repayment ability as factors for use in risk‐rating models
Authors: Zech Lyubov , Pederson Glenn
Published: June 2010

This study investigates important factors that should be used by lenders in risk‐rating their farm customers. These factors predict actual farm performance and debt repayment ability. Linear and logistic regression models are used to identify the debt‐to‐asset ratio as a major predictor of repayment ability. In addition, the rate of asset turnover and family living expenses are strong predictors of farm performance. The results are tested over several time periods to verify the robustness of the predictors.
Using extreme value theory to estimate value‐at‐risk
Authors: Odening Martin , Hinrichs Jan
Published: June 2010

This study examines problems that may occur when conventional Value‐at‐Risk (VaR) estimators are used to quantify market risks in an agricultural context. For example, standard VaR methods, such as the variance‐covariance method or historical simulation, can fail when the return distribution is fat tailed. This problem is aggravated when long‐term VaR forecasts are desired. Extreme Value Theory (EVT) is proposed to overcome these problems. The application of EVT is illustrated by an example from the German hog market. Multi‐period VaR forecasts derived by EVT are found to deviate considerably from standard forecasts. We conclude that EVT is a useful complement to traditional VaR methods.
Optimal investment in an automatic milking system: an application of real options
Authors: Hyde Jeffrey , Stokes Jeffrey R. , Engel Phoebe D.
Published: June 2010

Automatic milking systems (AMSs) are a relatively new technology characterized by uncertainty and irreversibility. The choice to invest in such a system is analyzed in a real options framework. Alternative financing arrangements, depreciation methods, and other factors are investigated to determine their influence on the optimal investment decision. The results suggest that farm capital structure, loan term, and depreciation method have little impact on the investment decision. The primary determinant in the AMS technology adoption decision appears to be whether the AMS will last longer than the existing parlor.
Sixteen years of chapter 12 bankruptcy: evolution of filing and disposition rates
Authors: Stam Jerome M. , Dixon Bruce L. , Rule William
Published: June 2010

Chapter 12 bankruptcy filing rates from 1986 to 2001 are compared with farm bankruptcy rates from 1898 1979. Data are also presented on Chapter 12 discharge rates. Although Chapter 12 filings are reorganizations and exclude liquidations, Chapter 12 filings per farm in the 1990s exceeded filing rates in earlier decades with comparable economic conditions. Higher proportions of Chapter 12 cases filed in the 1990s failed to receive discharges than Chapter 12 cases filed in the late 1980s. This finding may indicate more debt restructurings are taking place outside of Chapter 12 and that a higher proportion of filings are “hard cases.”
Modeling changes in the U.S. demand for crop insurance during the 1990s
Authors: Serra Teresa , Goodwin Barry K. , Featherstone Allen M.
Published: June 2010

The crop insurance purchase decision for a group of Kansas farmers is analyzed using farm‐level data from the 1990s, a period that experienced many changes in the federal crop insurance program. Results indicate a reduction in the elasticity of the demand for crop insurance with respect to premium rates by the end of the decade. The reduction in demand elasticity corresponded with a considerable increase in government subsidies by the end of the 1990s. This result may also reflect the attractiveness of new revenue insurance products which may have made producers less sensitive to premium changes.
Could the government manage its exposure to crop reinsurance risk?
Authors: Hayes Dermot J. , Lence Sergio H. , Mason Chuck
Published: June 2010

This study estimates the probability density function of the government’s net income from reinsuring crop insurance for corn, wheat, and soybeans. Based on 1997 data, it is estimated there is a 5% probability that the government will need to reimburse at least $1 billion to insurance companies, and that the fair value of the government’s reinsurance services to insurance firms equals $78.7 million. In addition, various hedging strategies are examined for their potential to reduce the government’s reinsurance risk. The risk reduction achievable by hedging is appreciable, but use of derivative contracts alone is clearly no panacea.
Post‐merger performance of agricultural cooperatives
Authors: Richards Timothy J. , Manfredo Mark R.
Published: June 2010

During the 1990s, the rate of consolidation among agricultural cooperatives, including mergers, acquisitions, strategic alliances, and joint ventures, increased significantly. While post‐merger performance has been examined extensively for investor‐owned firms, this has not been the case for agricultural cooperatives, primarily because these firms do not have an explicit profit motive or publicly traded stock. Results from a two‐stage econometric model reveal that a major motivation for cooperatives to engage in these activities is to circumvent capital constraints. Furthermore, the decision to merge and financial performance are jointly endogenous, with profitability positively influenced and sales growth negatively influenced by the likelihood of merger.
Credit score migration analysis of farm businesses: conditioning on business cycles and migration trends
Authors: Phillips Jill M. , Katchova Ani L.
Published: June 2010

This study examines credit score migration rates of farm businesses, testing whether migration probabilities differ across business cycles. Results suggest that agricultural credit ratings are more likely to improve during expansions and deteriorate during recessions. The analysis also tests whether agricultural credit ratings depend on the previous period migration trends. The findings show that credit score ratings exhibit trend reversal where upgrades (downgrades) are more likely to be followed by downgrades (upgrades).
Children's understandings of mediated health campaigns for childhood obesity
Authors: Babooram Melanie , Mullan Barbara Ann , Sharpe Louise
Published: June 2010

Purpose

The purpose of this paper is to investigate children's understandings of the intent and importance of current media initiatives designed to target childhood obesity. Semi‐structured interviews were analysed using qualitative content analysis, for the responses of overweight and normal weight children.

Design/methodology/approach

In total, 33 children were interviewed, 24 of normal weight and nine overweight. They were shown two print and four television advertisements from the New South Wales Health Department web site that were popularly broadcast between 2003 and 2007. Children were then asked if they had seen the advertisement prior to the interview, and their understanding of the intent and importance of the advertisements.

Findings

Most children in both weight groups recalled seeing five out of the six presented advertisements prior to interview. The main themes identified were “Health Maintenance” and “Illness Prevention” for five of the six advertisements. Overweight children were more numerous in their detection of a health message as opposed to normal weight children, who mostly commented on the safety aspect of advertisement six.

Practical implications

Future evaluations of mediated health campaigns should go beyond recording simple recall of campaign material and investigate instead the understandings of target groups. Mediated health campaigns should also specify messages to particular target groups, as they appear to be most likely to facilitate behaviour change.

Originality/value

Mediated health campaigns are mostly evaluated quantitatively rather than by qualitative means. In addition, no study has evaluated the views of overweight and normal weight children with regards to these health campaigns.
Modified atmosphere packaging and storage on sensory characteristics of ready‐to‐bake pizza
Authors: Singh Preeti , Goyal Gyanendra Kumar
Published: June 2010

Purpose

Consumer's demand for fresh, naturally preserved, food products has grown dramatically in recent years. Modified atmosphere packaging (MAP) has proved to be most innovative growth area in food packaging. Studies have been conducted to increase the shelf life of ready‐to‐bake pizza by using MAP technique. The purpose of this paper is to study the influence of different modified atmospheres and refrigerated storage on the sensory characteristics of the ready‐to‐bake (unbaked) pizza.

Design/methodology/approach

The most up‐to‐date and pertinent studies within the literature have been included and summated in this paper.

Findings

To determine the shelf life of MAP ready‐to‐bake pizza, the samples were subjected to four types of atmospheres (air, 100 per cent CO2, 100 per cent N2 and 50 per cent CO2/50 per cent N2) and stored for various time intervals at 7 ± 1 ○C. The shelf life of ready‐to‐bake pizza significantly increased up to 15 days (a 300 per cent increase) for the samples packaged under 100 per cent CO2 (atm 2), 50 per cent CO2/50 per cent N2 (atm 4) and 100 per cent N2 (atm 3), compared to conventional air pack (five days).

Originality/value

This paper gives a concise, up‐to‐date overview on how different gases affect the various sensory parameters of ready‐to‐bake‐pizza.
Promoting breastfeeding through drama: a preliminary study
Authors: Whelan Barbara , Kearney John M.
Published: June 2010

Purpose

Ireland has one of the lowest rates of breastfeeding in Europe with exclusive breastfeeding rates of 44 per cent at discharge from hospital. Increased awareness and debate on breastfeeding and its issues is needed. The purpose of this paper is to describe an evaluation of the piloting of a forum theatre production in increasing awareness of breastfeeding.

Design/methodology/approach

A mixed methods approach was taken. Research participants were identified through the four organisations in which the play was performed. Approximately 160 people watched a performance of the play. Quantitative data were collected from 110 audience members who completed a postcard survey. Qualitative data were collected from 42 people prior to seeing the play and 47 people after seeing the play, through focus groups and individual interviews.

Findings

Over 90 per cent of participants thought the play was a good way of discussing breastfeeding and they thought it was more effective than usual health promotion of giving out leaflets. Qualitative interviews found that the play heightened people's awareness of breastfeeding, highlighted the importance of support and engaged people in discussion and debate around breastfeeding.

Originality/value

The concept of promoting breastfeeding through drama is quite novel and this evaluation shows a potential for using such techniques in health promotion on varied nutrition‐related topics.
The perspectives of higher education faculty on Wikipedia
Authors: Chen Hsin‐liang
Published: June 2010

Purpose

This purpose of this paper is to investigate whether higher education instructors use information from Wikipedia for teaching and research.

Design/methodology/approach

This is an explorative study to identify important factors regarding user acceptance and use of emerging information resources and technologies in the academic community. A total of 201 participants around the world answered an online questionnaire administered by a commercial provider. The questionnaire consisted of 16 Likert‐scaled questions to assess participants' agreement with each question along with an optional open‐ended explanation.

Findings

The findings of this project confirm that internet access was related to faculty technology use. Online resources and references were ranked the first choice by the participants when searching for familiar and unfamiliar topics. The investigator found that participants' academic ranking status, frequency of e‐mail use and academic discipline were related to their use of online databases, web‐based information and directing students to information from the Web. Although the participants might often use online resources for research and teaching, Wikipedia's credibility was the participants' major concern.

Research limitations/implications

This project is an exploratory study and more considerations are needed for this research area.

Originality/value

The paper shows that participants who used online databases more often showed a negative attitude toward Wikipedia. Those participants who used Wikipedia for teaching and research also allowed students to use information from Wikipedia and were more likely to be contributors to Wikipedia.
Open card sorting and factor analysis: a usability case study
Authors: Lewis Krystal M. , Hepburn Peter
Published: June 2010

Purpose

The purpose of this paper is to describe the process, analysis, results, and implications of a card sorting usability study conducted during the planning stages of a web site redesign project at the University of Illinois at Chicago.

Design/methodology/approach

The methodology was based on recommendations from usability literature. An open card sort was conducted with 14 students and one faculty member using 93 cards labeled with content from the library's web site. The subjects were asked to “think aloud” and explain their rationale for sorting the cards. The researchers used statistical analysis software to run a factor analysis on the results.

Findings

The researchers extracted 11 categories of cards that loaded together and 27 cards that did not fit a category. The categories showed evidence of clustering by shared words, format, and process or task. Cards that did not load were standalone categories, or were redundant or meaningless to the subjects.

Research limitations/implications

The open card sort methodology and large number of cards resulted in cumbersome data that required specialized analysis. The qualitative data were critical to the interpretation of the quantitative data.

Practical implications

Libraries can use the process and analysis as a model for their own card sort usability studies. Results can be used to inform the naming of content and the creation of library web site architecture.

Originality/value

This study is unique in its use of the open card sort technique and factor analysis of the results. The results illustrate users' perceptions of library terminology and web site structure.
ICT and library operations
Authors: Adeleke A.A. , Olorunsola R.
Published: June 2010

Purpose

The purpose of this paper is to report the survey on the use of online tools and techniques for cataloguing and classification in Nigerian libraries.

Design/methodology/approach

A questionnaire was designed to elicit information from librarians on pertinent areas relating to the use of online tools for processing library resources.

Findings

The results of the survey reveal a high level of awareness among librarians in Nigeria about the benefits that could be derived in the use of online tools for cataloguing and classification processes. The study further reveals the need for continuing education programmes for cataloguers for effective use of the tools. The study shows that the use of online tools has advantages over manual methods. Librarians perceived the method to be useful and easy to use. The paper reveals ICT infrastructural facilities as major constraints facing libraries in the use of online tools. One of the expectations at the onset of the follow‐up study was that most of the problems identified with the use of the online tools in the Redeemer's University library study would not be different from the challenges facing other libraries. The results of this study have proved this to be true.

Practical implications

The conclusion rests on the need for an intensive continuing education programme to teach the skills required for online operations and the provision of web‐driven facilities in Nigerian libraries.

Originality/value

The paper provides information on libraries' awareness on the use of online methods for processing library resources, their efficiency and attitude of librarians to such tools. The paper shows that libraries in developing countries like Nigeria should intensify efforts to close the gap between them and those in the developed countries in terms of ICT literacy.
Continuing professional development needs of teachers in schools for competence‐based vocational education
Authors: Seezink Audrey , Poell Rob F.
Published: June 2010

Purpose

The purpose of this article is to help schools for vocational education determine teachers' continuing professional development needs associated with implementing competence‐based education programs, so that these schools can develop better attuned HR policies. It investigates which elements from the cognitive apprenticeship model and from the acquisition and participation metaphors can be identified in the individual action theories of their teachers.

Design/methodology/approach

A case study was conducted in one school for vocational education, where 12 teachers engaged in an innovation project around the development of a new competence‐based education program for pupils. They participated in concept mapping, cued interviews (based on video recordings), semi‐structured interviews, and a joint feedback session. These four sources were used for an in‐depth content analysis of teachers' action theories.

Findings

No distinctive, crystallized action theories about competence‐based vocational education emerged at the individual teacher level; let alone individual teachers' action theories well in line with the two normative frameworks on competence‐based education. The case study shows the struggle that individual teachers are going through to get their every‐day teaching repertoire more in line with new ideas on competence‐based education.

Research limitations/implications

Only qualitative data are gathered, in one school, representing one school type, in one country only, limiting the statistical generalizability of the results. Not all respondents are able to participate in all four data sources.

Practical implications

Schools should develop HR policies that offer teachers CPD activities in the crucial area of competence‐based education; the frameworks presented in the study can be used to this end, by teacher educators as well as by HRD professionals interested in combining training programs with informal employee learning.

Originality/value

The study draws on literature from various disciplines (especially educational psychology and HRD), which traditionally have remained mostly separate. It combines insights from four separate data sources.