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Producer Perceptions of Corn, Soybean and Cotton Price Risk

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  • Riley, John Michael
  • Anderson, John D.

Abstract

Risk is an inevitable part of agricultural production and all producers face various forms of risk. This study used the subjective price expectations and price distributions of survey participants to determine how producer’s expectations compare with that of the market. Data used for this study were gathered through survey responses from Mississippi State University Extension meeting and workshop participants. Individual respondent’s discreet stated price and price distribution information was fitted to a continuous distribution and an implied mean and standard deviation was determined. This was compared to market price and price risk data. Participants largely over-estimated price. Individual volatilities resulting from each fitted distribution were lower than that implied by the market.

Suggested Citation

  • Riley, John Michael & Anderson, John D., 2009. "Producer Perceptions of Corn, Soybean and Cotton Price Risk," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46865, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeana:46865
    DOI: 10.22004/ag.econ.46865
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    References listed on IDEAS

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    Cited by:

    1. Mattos, Fabio, 2012. "Do producers exhibit disposition effect? Evidence from grain marketing," Working Papers 125279, Structure and Performance of Agriculture and Agri-products Industry (SPAA).

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