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Managing Risk in Farming: Concepts, Research, and Analysis AgEcon
Harwood, Joy L.; Heifner, Richard G.; Coble, Keith H.; Perry, Janet E.; Somwaru, Agapi.
The risks confronted by grain and cotton farmers are of particular interest, given the changing role of the Government after passage of the 1996 Farm Act. With the shift toward less government intervention in the post-1996 Farm Act environment, a more sophisticated understanding of risk and risk management is important to help producers make better decisions in risky situations and to assist policymakers in assessing the effectiveness of different types of risk protection tools. In response, this report provides a rigorous, yet accessible, description of risk and risk management tools and strategies at the farm level. It also provides never-before-published data on farmers' assessments of the risks they face, their use of alternative risk management...
Tipo: Report Palavras-chave: Crop insurance; Diversification; Futures contracts; Leasing; Leveraging; Liquidity; Livestock insurance; Marketing contracts; Options contracts; Production contracts; Revenue insurance; Risk; Vertical integration; Farm Management; Risk and Uncertainty.
Ano: 1999 URL: http://purl.umn.edu/34081
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ANALYSIS OF THE RISK MANAGEMENT PROPERTIES OF GRAZING CONTRACTS VERSUS FUTURES AND OPTION CONTRACTS AgEcon
Harrison, R. Wes; Bobst, Barry W.; Benson, Fred J.; Meyer, Lee.
A stochastic budget simulator and generalized stochastic dominance are used to compare the risk management properties of grazing contracts to futures and option contracts. The results show that the risks of backgrounding feeder cattle are reduced significantly for pasture owners in a grazing contract. However, the risks of the cattle owner in a grazing contract are not significantly reduced. The results show that generally risk adverse pasture owners prefer grazing contracts to integrated production when traditional hedging is used to manage price risks. In addition, grazing contracts compare favorably with put option contracts for some pasture owners.
Tipo: Journal Article Palavras-chave: Backgrounding; Futures contracts; Grazing contracts; Options contracts; Risk management; Risk and Uncertainty.
Ano: 1996 URL: http://purl.umn.edu/15117
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