The Viability of a Crop Insurance Investment Account: The Case for Obion, County, Tennessee

This paper evaluates the feasibility of farmer-owned crop insurance accounts. The accounts, similar to retirement accounts, accumulate pre-subsidy premiums and dispense indemnities. Government involvement is that of guaranteeing loans if indemnities exceed the account balance. Substantial government savings occur through insurance premium subsidy elimination.Crop Production/Industries, Risk and Uncertainty,

SP701-A-Growing and Harvesting Switchgrass for Ethanol Production in Tennessee

Switchgrass is a warm-season perennial grass native to North America. The plant can reach heights up to 10 feet with an extensive root system. Once established, switchgrass well-managed for biomass should have a productive life of 10-20 years. Within the stand, switchgrass is an extremely strong competitor. However, it is not considered an invasive plant. Switchgrass adapts well to a variety of soil and climatic conditions. It is most productive on moderately well to well-drained soils of medium fertility and a soil pH at 5.0 or above. The high cellulosic content of switchgrass makes it a favorable feedstock for ethanol production. It is anticipated that switchgrass can yield sufficient biomass to produce approximately 500 gallons of ethanol per acre. While the Tennessee Biofuels Initiative includes a demonstration plant to make ethanol from switchgrass, the market for switchgrass as an energy crop remains limited. Producers will likely need to be located within 30 to 50 miles of a cellulosic ethanol plant. Producing switchgrass for energy generally occurs under some form of contractual arrangement with the end-user. To reap potential benefits from using switchgrass for cellulosic ethanol production, the system of production must be profitable for farmers and energy producers, as well as cost effective for consumers

Defining efficient commercial loan portfolios for regional and multi-regional lenders

Vita.During the 1980's many areas of the United States experienced financial stress which affected lending practices and portfolios. Some local borrowers were faced with closed or taken-over banks. Lenders were also faced with tradeoffs between various kinds of loans according to risk-return measures. The problems faced by the lenders became the focus of this study. To accomplish this study a methodology incorporating a mean variance (EV) model was used. Both a historical portfolio covering 1984-1990, and a projected portfolio covering 1991-1995 were estimated. These portfolios were estimated in each time period for three separate regions in Texas: Region 1 - Northern Plains of the Texas Panhandle; Region 2 - Southern Plains of the Texas Panhandle; Region 3 - Rolling Plains of Northwest Texas. A survey was also sent to lenders in the three regions of Texas to validate the projected portfolio findings. Results of the study indicate that the projected portfolio favors increased agricultural lending in the three regions of Texas, compared to the historical time period. The multiregional portfolio showed increased returns and decreased variances for Regions 1 and 2. For Region 3, returns in the multi-regional portfolio were similar, but Region 3's variances were lower. Survey results indicate a willingness of lenders in Regions 2 and 3 to change their agricultural portfolios

The Viability of a Crop Insurance Investment Account: The Case for Obion, County, Tennessee

This paper evaluates the feasibility of farmer-owned crop insurance accounts. The accounts, similar to retirement accounts, accumulate pre-subsidy premiums and dispense indemnities. Government involvement is that of guaranteeing loans if indemnities exceed the account balance. Substantial government savings occur through insurance premium subsidy elimination

Defining efficient commercial loan portfolios for regional and multi-regional lenders

Vita.During the 1980's many areas of the United States experienced financial stress which affected lending practices and portfolios. Some local borrowers were faced with closed or taken-over banks. Lenders were also faced with tradeoffs between various kinds of loans according to risk-return measures. The problems faced by the lenders became the focus of this study. To accomplish this study a methodology incorporating a mean variance (EV) model was used. Both a historical portfolio covering 1984-1990, and a projected portfolio covering 1991-1995 were estimated. These portfolios were estimated in each time period for three separate regions in Texas: Region 1 - Northern Plains of the Texas Panhandle; Region 2 - Southern Plains of the Texas Panhandle; Region 3 - Rolling Plains of Northwest Texas. A survey was also sent to lenders in the three regions of Texas to validate the projected portfolio findings. Results of the study indicate that the projected portfolio favors increased agricultural lending in the three regions of Texas, compared to the historical time period. The multiregional portfolio showed increased returns and decreased variances for Regions 1 and 2. For Region 3, returns in the multi-regional portfolio were similar, but Region 3's variances were lower. Survey results indicate a willingness of lenders in Regions 2 and 3 to change their agricultural portfolios