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Participation By Farmers In Forward Contracting And Hedging

Author

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  • Asplund, Nathan M.
  • Forster, D. Lynn
  • Stout, Thomas T.

Abstract

Logit models of farmers' forward pricing practices are developed. Results indicate: (a) farm size significantly affects use of hedging and forward contracting; (b) farmers inclination to search for information is related to their forward pricing practices; and (c) forward pricing practices are complementary with other risk reduction methods.

Suggested Citation

  • Asplund, Nathan M. & Forster, D. Lynn & Stout, Thomas T., 1989. "Participation By Farmers In Forward Contracting And Hedging," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270516, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea89:270516
    DOI: 10.22004/ag.econ.270516
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    References listed on IDEAS

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    4. Miller, Stephen E., 1986. "Forward Contracting Versus Hedging Under Price and Yield Uncertainty," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 139-146, December.
    5. Gershon Feder & Roger Slade, 1984. "The Acquisition of Information and the Adoption of New Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 312-320.
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    8. Miller, Stephen E., 1986. "Forward Contracting Versus Hedging Under Price And Yield Uncertainty," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 18(2), pages 1-8, December.
    9. T. P. Zacharias & D. A. Zaunbrecher & H. D. Traylor & B. E. McManus, 1987. "An analysis of preharvest soybean marketing strategies in louisiana using forward and futures contracts," Agribusiness, John Wiley & Sons, Ltd., vol. 3(4), pages 413-426.
    10. Harwood, Joy L. & Tomek, William G., 1987. "Year-Specific Estimation of Optimal Hedges for Central Illinois Soybean Producers," Research Bulletins 183669, Cornell University, Department of Applied Economics and Management.
    11. Patrick, George F. & Whitaker, Suzanne H. & Blake, Brian F., 1980. "Farmers' Goals And Risk Aversion: Some Preliminary Analyses," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271564, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
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    Cited by:

    1. Perry, Janet E. & Mishra, Ashok K., 1999. "Forward Contracting Of Inputs: A Farm-Level Analysis," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 17(2), pages 1-15.
    2. Ashok Mishra & Barry Goodwin, 2006. "Revenue insurance purchase decisions of farmers," Applied Economics, Taylor & Francis Journals, vol. 38(2), pages 149-159.

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