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What Drives How Much Crop Producers Sell in Spot, Forward, and Futures Markets?

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  • Franken, Jason R.V.
  • Pennings, Joost M.E.

Abstract

Crop producers have numerous marketing and risk management tools available. Research relating producers’ risk attitudes to their use of these tools has produced mixed results, and most studies focus on individual tools to the neglect of complementarities among them. Hence, little is known about the proportion in which these tools are used, e.g., the percentage of the crop that is forward sold as opposed to hedged. This study identifies some factors, including risk attitude, that impact the proportion of corn producers’ sales through spot markets, futures and options, and forward and production contracts using complementary survey and accounting data.

Suggested Citation

  • Franken, Jason R.V. & Pennings, Joost M.E., 2009. "What Drives How Much Crop Producers Sell in Spot, Forward, and Futures Markets?," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49237, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea09:49237
    DOI: 10.22004/ag.econ.49237
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    References listed on IDEAS

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    Cited by:

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    2. Roussy, Caroline & Rider, Aude & Chaib, Karim & Boyet, Marie, 2017. "Marketing Contracts and Risk Management for Cereal Producers," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261106, European Association of Agricultural Economists.

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    Keywords

    Marketing; Risk and Uncertainty;

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