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Teaching Forward Contracts in Undergraduate Courses in Agribusiness and Agricultural Economics Programs

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  • Bolotova, Yuliya V.

Abstract

This article presents teaching materials for teaching forward contracts in undergraduate courses in agribusiness and agricultural economics programs, as well as educational materials for Extension and outreach activities. The teaching materials include: (a) an introduction to spot and forward contracts as market exchange mechanisms and an explanation of the main differences between these two types of contracts; (b) a discussion of the business rationale for using forward contracts, as compared to spot contracts; (c) a simple economic framework explaining the mechanics of forward contracts; and (d) analytical problem sets demonstrating applications of this framework in the U.S. beef, pork, and milk supply chains. The teaching note includes analytical problem sets, multiple choices questions, and answer keys for all questions.

Suggested Citation

  • Bolotova, Yuliya V., 2022. "Teaching Forward Contracts in Undergraduate Courses in Agribusiness and Agricultural Economics Programs," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(4), September.
    • Handle: RePEc:ags:aaeatr:324805
    DOI: 10.22004/ag.econ.324805
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    References listed on IDEAS

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    1. Wolf, Christopher A. & Widmar, Nicole J. Olynk, 2014. "Adoption of Milk and Feed Forward Pricing Methods by Dairy Farmers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 527-541, November.
    2. MacDonald, James M. & Korb, Penelope J., 2011. "Agricultural Contracting Update: Contracts in 2008," Economic Information Bulletin 101279, United States Department of Agriculture, Economic Research Service.
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