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Agricultural Economics

Louisiana State University

LSU Master's Theses

Risk management

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Evaluation Of The Impact Of Changes In Commodity Income Support Measures Included In The Agricultural Act Of 2014 On Equitable Louisiana Rice Production Rental Arrangements, Abdallahi Ould Abderrahmane Jan 2015

Evaluation Of The Impact Of Changes In Commodity Income Support Measures Included In The Agricultural Act Of 2014 On Equitable Louisiana Rice Production Rental Arrangements, Abdallahi Ould Abderrahmane

LSU Master's Theses

ABSTRACT This research uses a Simetar simulation technique to evaluate the effect of the adoption of the Price Loss Coverage program included in the 2014 Agricultural Act on Louisiana’s rice equitable rental arrangement choices. Two scenarios are examined: one in which prices of the last three years are detrended and a second one in which they are not detrended. Each scenario includes six rental arrangements (Cash rent, Fixed Price, Fixed Yield, 60/40, 70/30, 80/20) and each rental arrangement has four adjustments (base, price trigger, yield trigger, and price and yield trigger). Three different risk measure analysis were conducted: Mean-Variance, Value …