Evaluation of Risk Management Methods for Satsuma Mandarin

Abstract

Simulation of production budgets were used to compare net discounted returns and the distribution of returns under alternative risk-mitigation scenarios. Results indicate that the combination of freeze protection and crop insurance increases expected net discounted 20-year returns while decreasing the downside risk. Break-even prices ranged from $.257 to$.289 per pound. Crop insurance returns were constant across price.Satsuma oranges, freeze protection, crop insurance, production budget, simulation, Crop Production/Industries, Farm Management, Risk and Uncertainty, C63, D81, Q12,