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Price Risk Management for Australian Broad acre Farmers: some observations

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  • Kingwell, Ross

Abstract

This article briefly explores the nature of price risk faced by Australian broad acre farmers and outlines some farm management ramifications of price risk. The article describes the variation in price risk across time and across commodities. The underlying distributional form of prices faced by farmers is shown to have important ramifications for farm management. The likelihood of increases in price risk over the coming two decades is also discussed.

Suggested Citation

  • Kingwell, Ross, 2000. "Price Risk Management for Australian Broad acre Farmers: some observations," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 8, pages 1-12, June.
    • Handle: RePEc:ags:auagre:242025
    DOI: 10.22004/ag.econ.242025
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    File URL: https://ageconsearch.umn.edu/record/242025/files/Kingwell.pdf
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    References listed on IDEAS

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    1. Peter Bardsley & Nilss Olekalns, 1996. "Wool Price Variability In The Long Run," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 40(1), pages 51-61, April.
    2. Williams,Jeffrey C. & Wright,Brian D., 2005. "Storage and Commodity Markets," Cambridge Books, Cambridge University Press, number 9780521023399, October.
    3. Tweeten, Luther G., 1998. "Anticipating a Tighter Global Food Supply-Demand Balance in the Twenty-first Century," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 13(3), pages 1-5.
    4. Pinstrup-Andersen, Per & Pandya-Lorch, Rajul, 1998. "Recent Developments and Emerging Issues in World Food Security," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 13(3), pages 1-4.
    5. Rozelle, Scott & Rosegrant, Mark W., 1997. "China's past, present, and future food economy: can China continue to meet the challenges?," Food Policy, Elsevier, vol. 22(3), pages 191-200, June.
    6. Rosegrant, Mark W. & Ringler, Claudia, 1997. "World food markets into the 21st century: environmental and resource constraints and policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), pages 1-28.
    7. Bardsley, Peter, 1991. "Wool on the Brink - The Public Cost of Underwriting the Wool Market," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145557, Australian Agricultural and Resource Economics Society.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Browne, Natalie & Kingwell, Ross & Behrendt, Ralph & Eckard, Richard, 2013. "The relative profitability of dairy, sheep, beef and grain farm enterprises in southeast Australia under selected rainfall and price scenarios," Agricultural Systems, Elsevier, vol. 117(C), pages 35-44.
    2. Bathgate, A. & Revell, C. & Kingwell, R., 2009. "Identifying the value of pasture improvement using wholefarm modelling," Agricultural Systems, Elsevier, vol. 102(1-3), pages 48-57, October.
    3. Monjardino, Marta & McBeath, T. & Brennan, Lisa E. & Llewellyn, Rick S., 2012. "Are farmers in low-rainfall cropping regions under-fertilizing? An Australian case-study," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 124976, International Association of Agricultural Economists.
    4. Monjardino, M. & McBeath, T. & Ouzman, J. & Llewellyn, R. & Jones, B., 2015. "Farmer risk-aversion limits closure of yield and profit gaps: A study of nitrogen management in the southern Australian wheatbelt," Agricultural Systems, Elsevier, vol. 137(C), pages 108-118.
    5. Jackson, Elizabeth & Quaddus, Mohammed & Islam, Nazrul & Stanton, John & Hoque, Zohurul, 2007. "A Multi-Disciplinary Approach For Determining Adoption Of Agricultural Price Risk Management Strategies," 81st Annual Conference, April 2-4, 2007, Reading University, UK 7985, Agricultural Economics Society.
    6. Jackson, Elizabeth & Quaddus, Mohammed & Islam, Nazrul & Hoque, Zohurul & Stanton, John, 2006. "Selling raw wool by forward contract: A qualitative analysis of the pros and cons," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139793, Australian Agricultural and Resource Economics Society.
    7. Monjardino, Marta & McBeath, T. & Brennan, Lisa E. & Llewellyn, Rick S., 2012. "Revisiting N fertilisation rates in low-rainfall grain cropping regions of Australia: A risk analysis," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124339, Australian Agricultural and Resource Economics Society.
    8. de Vries, Jasper R. & Aarts, Noelle & Lokhorst, Anne Marike & Beunen, Raoul & Munnink, Josefien Oude, 2015. "Trust related dynamics in contested land use," Forest Policy and Economics, Elsevier, vol. 50(C), pages 302-310.
    9. Williams, John & McSweeney, Peter & Salmon, Robert, 2014. "Australian Farm Investment: Domestic and Overseas Issues," Papers 234408, University of Melbourne, Melbourne School of Land and Environment.
    10. Deane, Paul & Malcolm, Bill, 2006. "Do Australian woolgrowers manage price risk rationally?," AFBM Journal, Australasian Farm Business Management Network, vol. 3(2), pages 1-7.
    11. Jackson, Elizabeth & Quaddus, Mohammed & Islam, Nazrul & Stanton, John, 2008. "A mixed-method approach for determining the risk and complexity farmers associate with using forward contracts," 82nd Annual Conference, March 31 - April 2, 2008, Royal Agricultural College, Cirencester, UK 42305, Agricultural Economics Society.

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    Keywords

    Farm Management; Risk and Uncertainty;

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