Abstract
U.S. agricultural producers face significant financial risks due to price and yield volatility, compounded by global market uncertainties, climate variability, and policy changes. This study employs a simulation-based framework to model correlated price and yield risks for corn and soybeans. Cash and futures prices are simulated based on current market conditions, while yield distributions follow a non-parametric approach to reflect historical variability. The study evaluates risk management strategies by optimizing a portfolio of insurance products and commodity title programs using Conditional Value at Risk (CVaR) and return-to-CVaR metrics. Insurance options analyzed include Revenue Protection (RP), RP with Harvest Price Exclusion, Yield Protection, and coverage options like ECO and SCO. Commodity title programs considered are ARC-CO and PLC. Sensitivity analyses explore the impact of policy changes, insurance parameters, and yield correlations. Findings provide insights for policymakers and producers, contributing to broader research on marketing and procurement risk management strategies.