Using the Futures Market to Lower the Farm Management Risks of Producing for Unknown Market Prices in the USA: A Farm Example of a Maize Hedger

This paper illustrates a simple hedging procedure for reducing the risk of investing in production. costs . by locking in a predetermined price range. The emphasis.is on planning and budgeting before committing resources to production. Success is measured as a return to management. The hedging methodology used in the paper is applicable to.any agricultural enterprise where basis is known. It is ·probably impossible to hedge successfally without a good · 'f.'nderstanding of basis.


Issue Date:
1995-12
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/237437
Total Pages:
13
Series Statement:
International Working Paper Series




 Record created 2017-04-01, last modified 2017-08-29

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