... capital during the growing season. However, the exact contract terms pertaining to risk sharing are generally informal; very few CSA share agreements stipulate the course of action should there be a full loss of farm production due to disease, pests, or weather events, such as tornadoes, droughts...

... is inversely related to the level of risk aversion and the riskiness of the project. Thus, an investor must share more income when a farmer is more risk averse or a project is more risky. © MCB UP Limited 2002 Agricultural finance External equity Principal‐agent Risk sharing External Equity...