The modelling structure is adapted from OECD (2005) and is presented in Annex 2. More details are available in [TAD/CA/APM/WP/RD(2009) 14/FINAL]. This model structure is well suited to analyzing the main sources of risk and risk management strategies, and it responds well to the available farm level data. However, it has some limitations (see Annex 2), for instance, it is not able to capture farmers’ endogenous decisions to change the mix of inputs.