The regionís farmers could be trading one volatility for another. (via)
In your world, does having a Plan B increase risk?
Update: OK, so my point was not clear, but the article is. The farmers are not getting married to soya bean. They are planting it this year and they can return to cotton next year – the article itself predicts that they will, when the price of cotton moves back up. The two crops could be individually as volatile as they want. But unless their volatilities are perfectly correlated -the evidence of the article indicates that they are not-† when the two are combined,† their effect on the farmer’s fortune will be to reduce volatility.