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A Comparison Of Marketing Strategies For Potatoes In Upstate New York

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  • Young, Ralph
  • Tomek, William G.

Abstract

A long-standing problem in agricultural marketing is the question of "optimal" marketing patterns for a seasonally produced crop. When futures markets exist, agricultural economists have often recommended their use to improve marketing decisions, but farmer use of futures as an aid to marketing is not common. This paper considers the potential benefits to upstate New York farmers of hedging using Maine potato futures contracts. Benefits are defined in terms of the mean and variance of returns from alternative marketing strategies for potatoes. A portfolio approach is implicit in the analysis which also relies, in part, on the formulation of a simple price-forecasting model.

Suggested Citation

  • Young, Ralph & Tomek, William G., 1978. "A Comparison Of Marketing Strategies For Potatoes In Upstate New York," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 7(2), pages 1-6, October.
    • Handle: RePEc:ags:nareaj:159052
    DOI: 10.22004/ag.econ.159052
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    References listed on IDEAS

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    1. Anderson, Jock R. & Dillon, John L. & Hardaker, Brian, 1977. "Agricultural Decision Analysis," Monographs: Applied Economics, AgEcon Search, number 288652, November.
    2. Telser, Lester G & Higinbotham, Harlow N, 1977. "Organized Futures Markets: Costs and Benefits," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 969-1000, October.
    3. William G. Tomek & Roger W. Gray, 1970. "Temporal Relationships Among Prices on Commodity Futures Markets: Their Allocative and Stabilizing Roles," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(3), pages 372-380.
    4. Anne E. Peck, 1975. "Hedging and Income Stability: Concepts, Implications, and an Example," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 410-419.
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    1. Sooy, Jeff & Branch, Ben, 1980. "A Study Of The Economic Functions Of The Maine Potato Futures Market," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 9(1), pages 1-11, April.
    2. Sooy, Jeff & Branch, Ben, 1980. "A Study Of The Economic Functions Of The Maine Potato Futures Market," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-11, April.

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    Keywords

    Crop Production/Industries; Marketing;

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