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Agricultural options: An alternative to current agricultural programs

Author

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  • Kandice H. Kahl

    (Associate Professor in the Department of Agricultural Economics and Rural Sociology at Clemson University)

Abstract

Agricultural options can enable farmers to obtain some of the same types of price protection currently available through the government's agricultural programs. Farmers can use agricultural options to reduce the price variability that they face when they sell their commodities, without disrupting market prices and thus market signals. The benefits of using agricultural options instead of price-support programs will be better allocation of resources, increased exports, and reduced government spending in agriculture. However, practical problems must be solved before agricultural options can replace certain agricultural programs.

Suggested Citation

  • Kandice H. Kahl, 1986. "Agricultural options: An alternative to current agricultural programs," Agribusiness, John Wiley & Sons, Ltd., vol. 2(2), pages 215-224.
    • Handle: RePEc:wly:agribz:v:2:y:1986:i:2:p:215-224
    DOI: 10.1002/1520-6297(198622)2:2<215::AID-AGR2720020206>3.0.CO;2-B
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    References listed on IDEAS

    as
    1. Kenyon, David E., 1984. "Farmers' Guide to Trading Agricultural Commodity Options," Agricultural Information Bulletins 309322, United States Department of Agriculture, Economic Research Service.
    2. Avner Wolf, 1982. "Fundamentals of commodity options on futures," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 2(4), pages 391-408, December.
    3. Rothstein, Morton, 1983. "The Chicago Board of Trade, 1859–1905: the Dynamics of Self-Regulation. By Jonathan Lurie. Urbana, University of Illinois Press, 1979. Pp. xv + 234. $12.50. - Merchants of Grain. By Dan Morgan. New Yo," Business History Review, Cambridge University Press, vol. 57(1), pages 118-119, April.
    4. Michael T. Belongia, 1983. "Commodity options: a new risk management tool for agricultural markets," Review, Federal Reserve Bank of St. Louis, vol. 65(Jun), pages 5-15.
    5. G. Edward Schuh, 1984. "Future Directions for Food and Agricultural Trade Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(2), pages 242-247.
    6. Bruce L. Gardner, 1977. "Commodity Options for Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(5), pages 986-992.
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    Cited by:

    1. Blank, Steven C., 1989. "Research On Futures Markets: Issues, Approaches, And Empirical Findings," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-14, July.

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