PRICE VARIABILITY AND FINANCIAL RISK FOR SUGAR BEET GROWERS

This paper develops a portfolio framework to characterize and analyze the impact of price risk faced by sugar beet growers in the Red River Valley and derives implications for capital markets. Other sources of risk incorporated in the analysis are yields and production cost. Results from stochastic simulation analysis reveal that sugar beet growers incur significant price and financial risk. The hypothesis that the loan rate for sugar truncates the distribution of net returns and protects growers against declining beets prices was not validated.


Issue Date:
2000
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/36493
Total Pages:
27
Series Statement:
Selected Paper of the 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia




 Record created 2017-04-01, last modified 2017-04-26

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