In this paper, we propose a general mathematical model for analyzing yield data. The data analyzed in this paper come from a characteristic corn field in the upper midwestern United States. We derive expressions for statistical moments from the underlying stochastic model. Consequently, we illustrate how a particular feature variable contributes to the statistical moments (and in effect, the characteristic function) of the target variable (i.e., yield). We also analyze the data with neural network techniques and provide two methods of data analysis. This mathematical model and neural network-based data analysis allow for better understanding of the variability within the data set, which is useful to farm managers attempting to make current and future decisions using the yield data. Lenders and risk management consultants may benefit from the insights of this mathematical model and neural network-based data analysis regarding yield expectations.

In this paper, a refined Barndorff-Nielsen and Shephard (BN-S) model is implemented to find an optimal hedging strategy for commodity markets. The refinement of the BN-S model is obtained with various machine and deep learning algorithms. The refinement leads to the extraction of a deterministic parameter from the empirical data set. The problem is transformed to an appropriate classification problem with a couple of different approaches: the volatility approach and the duration approach. The analysis is implemented to the Bakken crude oil data and the aforementioned deterministic parameter is obtained for a wide range of data sets. With the implementation of this parameter in the refined model, the resulting model performs much better than the classical BN-S model.