| Many farmers face more challenging production, marketing, and financial decisions with the passage of the 1996 farm bill. This thesis analyzed risk management strategies for North Dakota farmers.;Seven experiment stations, including Carrington, Dickinson, Fargo, Hettinger, Langdon, Minot, and Williston, were chosen to develop crop yield variability based on 1980-1995 data. County yield information was used for correlations and as a guide for developing representative farms. Price information was collected using Crop Reporting District prices on most crops and state average prices for oil sunflowers, soybeans, and drybeans. Three main areas were considered: Crop Insurance, Diversification of Crops, and Forward Contracting. The Agricultural Risk Management Simulator model was used to determine net cash flow distributions.;Diversification generally reduced downside risk without seriously affecting upside potential. Crop insurance reduced downside risk, but also reduced upside potential. Forward contracting posed additional downside risk in some cases, but offered substantial upside potential. |
