Author: Aaron Gasper
Publisher:
ISBN:
Category :
Languages : en
Pages : 174
Book Description
The Cost of Forward Contracting Wheat, Corn, and Soybeans in Kansas
Forward Contracting in the Corn Belt and Spring Wheat Areas, 1988
Author:
Publisher:
ISBN:
Category : Agricultural credit
Languages : en
Pages : 28
Book Description
Publisher:
ISBN:
Category : Agricultural credit
Languages : en
Pages : 28
Book Description
The Cost of Forward Contracting Versus Hedging for Corn and Soybeans in Illinois
Author: Jinghong Shu
Publisher:
ISBN:
Category :
Languages : en
Pages : 194
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 194
Book Description
Potentials for Substituting Farmers' Use of Futures and Options for Farm Programs
Author: Richard G. Heifner
Publisher:
ISBN:
Category : Agricultural subsidies
Languages : en
Pages : 88
Book Description
Publisher:
ISBN:
Category : Agricultural subsidies
Languages : en
Pages : 88
Book Description
Cash Grain Pricing in 1974
Author: Richard G. Heifner
Publisher:
ISBN:
Category : Grain
Languages : en
Pages : 4
Book Description
Publisher:
ISBN:
Category : Grain
Languages : en
Pages : 4
Book Description
An Economic Analysis of Corn and Soybean Forward Contract Prices, Risk Premiums and Basis Behavior
Author: Nicholas Elliott Karlson
Publisher:
ISBN:
Category :
Languages : en
Pages : 360
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 360
Book Description
Calculation of Wheat Deficiency Payments
Author: United States. Congress. House. Committee on Agriculture. Subcommittee on Wheat, Soybeans, and Feed Grains
Publisher:
ISBN:
Category : Political Science
Languages : en
Pages : 194
Book Description
Publisher:
ISBN:
Category : Political Science
Languages : en
Pages : 194
Book Description
Journal of Agricultural and Resource Economics
Author:
Publisher:
ISBN:
Category : Agriculture
Languages : en
Pages : 608
Book Description
Publisher:
ISBN:
Category : Agriculture
Languages : en
Pages : 608
Book Description
Farmers' Use of Cash Forward Contracts, Futures Contracts, and Commodity Options
Author: Allen B. Paul
Publisher:
ISBN:
Category : Agricultural contracts
Languages : en
Pages : 40
Book Description
Extract: Unstable farm prices can spur farmers' interest in the various forms of forward selling. Forward selling, which involves selling crops or livestock in advance of delivery, enables farmers to reduce the risk that the price they get for their output might not cover the costs of their inputs and to assure outlets for highly specialized or perishable products. Among the various forms of forward selling are cash forward contracts, futures contracts, and commodity options. This report describes different types of forward contracts, the factors a farmer should consider, and the major pitfalls involved.
Publisher:
ISBN:
Category : Agricultural contracts
Languages : en
Pages : 40
Book Description
Extract: Unstable farm prices can spur farmers' interest in the various forms of forward selling. Forward selling, which involves selling crops or livestock in advance of delivery, enables farmers to reduce the risk that the price they get for their output might not cover the costs of their inputs and to assure outlets for highly specialized or perishable products. Among the various forms of forward selling are cash forward contracts, futures contracts, and commodity options. This report describes different types of forward contracts, the factors a farmer should consider, and the major pitfalls involved.
Determinants of Risk Premiums on Forward Contracts for Kansas Wheat
Author: Kyle Waldie
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Forward contracts are one of the main tools used by producers to manage price risk because forward contracts shift the risk from producers to the grain elevator offering the contract. The elevators protect themselves from this risk by hedging, leaving them susceptible to basis risk, which they offset by adding a risk premium to the forward contracts they offer producers. This risk premium is affected by increased volatility and by differences in elevator-specific characteristics at elevator locations across Kansas. This study replicates the results in Taylor, Tonsor, and Dhuyvetter (2013) and adds a set of elevator-specific characteristics to measure their effect on risk premiums. A random effects generalized least squares model is estimated due to the data gathered being panel data. The contribution of this study is to further examine the drivers of risk premiums in forward contracts for Kansas wheat. The results indicate that all of the elevator-specific characteristics in the data set have a statistically significant impact on the value of risk premiums on forward contracts for Kansas wheat. The results also confirm the findings in Mallory, Etienne, and Irwin (2012) and Taylor, Tonsor, and Dhuyvetter (2013) that increased volatility post 2007 caused increases in risk premiums. The risk premiums after the structural break in 2007 increased by $0.069695/bushel, as the average risk premium prior to 2008 was $0.158682/bushel, while the average risk premium after 2007 was $0.228378/bushel.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Forward contracts are one of the main tools used by producers to manage price risk because forward contracts shift the risk from producers to the grain elevator offering the contract. The elevators protect themselves from this risk by hedging, leaving them susceptible to basis risk, which they offset by adding a risk premium to the forward contracts they offer producers. This risk premium is affected by increased volatility and by differences in elevator-specific characteristics at elevator locations across Kansas. This study replicates the results in Taylor, Tonsor, and Dhuyvetter (2013) and adds a set of elevator-specific characteristics to measure their effect on risk premiums. A random effects generalized least squares model is estimated due to the data gathered being panel data. The contribution of this study is to further examine the drivers of risk premiums in forward contracts for Kansas wheat. The results indicate that all of the elevator-specific characteristics in the data set have a statistically significant impact on the value of risk premiums on forward contracts for Kansas wheat. The results also confirm the findings in Mallory, Etienne, and Irwin (2012) and Taylor, Tonsor, and Dhuyvetter (2013) that increased volatility post 2007 caused increases in risk premiums. The risk premiums after the structural break in 2007 increased by $0.069695/bushel, as the average risk premium prior to 2008 was $0.158682/bushel, while the average risk premium after 2007 was $0.228378/bushel.