A Farm‐Level Financial Analysis of Farmers' Use of Futures and Options under Alternative Farm Programs

AbstractMany agricultural producers face cash price distributions that are effectively truncated at a lower limit through participation in farm programs designed to support farm prices and incomes. For example, the 1996 Federal Agricultural Improvement Act (FAIR) makes many producers eligible to obtain marketing loans which truncate their cash price realization at the loan rate, while allowing market prices to freely equilibrate supply and demand. This paper studies the effects of truncated cash price distributions on the optimal use of futures and options. The results show that truncation in the cash price distribution facing an individual producer provides incentives to trade options as well as futures. We derive optimal futures and options trading rules under a range of different truncation scenarios. Empirical results highlight the impacts of basis risk and yield risk on the optimal futures and options portfolio.

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Exploring Options for a New Farm Bill

Journal of Agricultural and Applied Economics ◽

10.1017/s107407080000571x ◽

2001 ◽

Vol 33 (2) ◽

pp. 261-270

Author(s):

Gary M. Adams ◽

James W. Richardson

Keyword(s):

Farm Bill ◽

Farm Level ◽

Farm Programs ◽

Representative Farms

AbstractThree farm programs to increase support by $6 billion per year are analyzed. Higher marketing loan (ML), higher AMTA payments, and Modified Supplemental Income (SIP) program are evaluated at the sector and farm levels. At the sector level impacts on supply, demand, and price are modest with acreage shifts of less than two million acres. At the farm level SIP was preferred by cotton farms and higher ML was preferred by farms producing soybeans. Higher AMTA payments were preferred by 3 of 11 farms. Overall, SIP was ranked first or second by 10 of 11 representative farms.

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A Farm-Level Analysis of Soil Loss Control: Modeling the Probabilistic Nature of Annual Soil Loss

Northeastern Journal of Agricultural and Resource Economics ◽

10.1017/s0899367x00001756 ◽

1988 ◽

Vol 17 (2) ◽

pp. 125-130 ◽

Cited By ~ 1

Author(s):

William T. McSweeny

Keyword(s):

Soil Loss ◽

Farm Level ◽

Tillage Practices ◽

Farm Planning ◽

Farm Programs ◽

Conservation Plan ◽

Loss Control ◽

Probabilistic Nature ◽

Control Modeling ◽

Level Analysis

The Conservation Compliance provision of the Food Security Act of 1985 requires all farmers who farmed highly erodible land prior to the passage of the Act to have a locally approved conservation plan fully implemented by 1995 or lose eligibility for numerous farm programs. Soil loss estimates of various crop, tillage practices, and conservation practices, however, are stochastic in nature. A farm planning model is suggested that allows for stochastic soil loss estimates. The model is compared to other models used in farm level soil conservation studies. The model shows promise as a more acceptable tool in that the farm plans are more likely to be acceptable to the farmer.

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p-EMA (II): evaluating ecological risks of pesticides for a farm-level risk assessment system

Agronomie ◽

10.1051/agro:2002075 ◽

2003 ◽

Vol 23 (1) ◽

pp. 75-84 ◽

Cited By ~ 9

Author(s):

Andy Hart ◽

Colin D. Brown ◽

Kathy A. Lewis ◽

John Tzilivakis

Keyword(s):

Risk Assessment ◽

Assessment System ◽

Ecological Risks ◽

Farm Level

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The Russian ruble crisis of December 2014

Voprosy Ekonomiki ◽

10.32609/0042-8736-2016-5-66-86 ◽

2016 ◽

pp. 66-86

Author(s):

A. Obizhaeva

Keyword(s):

Microstructure Analysis ◽

Future Market ◽

Effective Response ◽

Large Order ◽

Short Period ◽

The Face ◽

Front Running ◽

Futures And Options

The paper presents a microstructure analysis of the crash of the Russian ruble in mid-December 2014. The author shows that the market break probably happened due to the execution of a large order that converted Russian rubles into U.S. dollars over a short period of a few days. Expirations of futures and options as well as possible front-running could have exacerbated the collapse of the Russian currency. The paper discusses measures taken by the Moscow Exchange and Bank of Russia during the episode and makes several recommendations to prevent a repetition of the similar events and provide an effective response in the face of future market breaks.

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Financial Analysis of SBI: a study with special reference to Indian Banking Industry

International Journal of Contemporary Research and Review ◽

10.15520/ijcrr/2017/8/07/281 ◽

2017 ◽

Author(s):

Barinder Singh

Keyword(s):

Special Reference ◽

Banking Industry ◽

Financial Analysis

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The Challenge of Traditional Market Traders in Denpasar City with the Problem of Business Management and Sales Strategy

International Journal of Contemporary Research and Review ◽

10.15520/ijcrr/2018/9/07/551 ◽

2018 ◽

Vol 9 (07) ◽

pp. 20880-20885

Author(s):

Luh Kadek Budi Martini ◽

Putu Sri Astuti ◽

Luh Komang Candra Dewi

Keyword(s):

Marketing Strategy ◽

Financial Analysis ◽

Business Management ◽

Organic Fertilizers ◽

Sales Strategy ◽

Communication Techniques ◽

Traditional Market ◽

Financial Transactions ◽

And Training

Challenges by traditional fruit market traders in Denpasar are weaknes in business management, bookkeeping administration sales strategy, buyers service, communication techniques, and rotten fruits that do not sell yet untapped. The purposes of this empowerment are to (1 ) improvement of business management, (2) increased of knowledge for traders: bookkeeping administration is the procedure of recording financial transactions and can easily perform financial analysis, sales strategy, especially arrangement of merchandise (display), service to buyers, communication techniques and transactions honest but still profitable, (3) utilization of rotten fruit that is not sold to be processed into MOL (local microorganisms) for the manufacture of organic fertilizers in the household scale. The method used is counseling and training. The results of the activities are as follows: 1) fruit trader group can already well manage its trading business.2) fruit trader group can make good administration and business bookkeeping 3) fruit trader group can make marketing strategy by arranging (display) with well, and already use Show Case for display merchandise, customer visits increased 25%. 4) Fruit merchant group can already utilize rotten fruit as MOL for liquid crop fertilizer

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