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Alternative Strategies to Manage Weather Risk in Perennial Fruit Crop Production

  • Shuay-Tsyr Ho, Jennifer E. Ifft, Bradley J. Rickard and Calum G. Turvey
Abstract

Fruit producers in the Eastern United States face a wide range of weather-related risks that have the capacity to largely impact yields and profitability. This research examines the economic implications associated with responding to these risks for sweet cherry production in three different systems: high tunnels, revenue insurance, and weather insurance. The analysis considers a distribution of revenue flows and costs using detailed price, yield, and weather data between 1984 and 2013. Our results show that the high tunnel system generates the largest net return if significant price premiums exist for earlier and larger fruit.

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Copyright
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Corresponding author
Correspondence: Bradley J. Rickard ■ Charles H. Dyson School of Applied Economics and ManagementCornell UniversityIthaca, NY 14853 ■ Phone 607.255.7417 ■ Email bjr83@cornell.edu
Footnotes
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The authors gratefully acknowledge valuable input provided by two anonymous reviewers and by the editor David Abler. We would also like to thank Terence Robinson and Greg Lang for valuable input and discussions about the use of high tunnels in fruit production in New York and Michigan. This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, Small and Medium-Sized Farms Program under Award No. 2012-68006-30188 and by the National Institute of Food and Agriculture, U.S. Department of Agriculture, Hatch project under Award No. 1008694. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the views of the U.S. Department of Agriculture.

The views expressed are the authors’ and do not necessarily represent the policies or views of any sponsoring agencies.

Footnotes
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Agricultural and Resource Economics Review
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