Forward Pricing Behavior of Corn and Soybean Producers
AbstractForward pricing behavior of random samples of Indiana, Nebraska, and Mississippi crop producers was analyzed using Heckmanâ€™s two-step limited information maximum likelihood estimation procedure. Producers who forward priced during the 1995-1998 period generally expected to forward price in 1999 using similar techniques. Probit models were estimated for cash forward contracts and taking a direct position in futures or options separately and combined. Results provide limited support for the hypothesis that forward pricing should be analyzed as an adoption decision. Variables reflecting risk attitudes do affect the decision to use forward pricing, while variables to economic position affect the level of forward pricing.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.
Volume (Year): 37 (2005)
Issue (Month): 01 (April)
forward contracts; futures; grain marketing; Heckman procedure; Crop Production/Industries; Marketing; Production Economics; Q130; Q120;
Find related papers by JEL classification:
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brorsen, B. Wade & Anderson, Kim B., 1994. "Cash Wheat Marketing: Strategies for Real People," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 12(2).
- Townsend, John P. & Brorsen, B. Wade, 2000.
"Cost Of Forward Contracting Hard Red Winter Wheat,"
Journal of Agricultural and Applied Economics,
Southern Agricultural Economics Association, vol. 32(01), April.
- Townsend, John P. & Brorsen, B. Wade, 1997. "Cost of Forward Contracting Hard Red Winter Wheat," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35749, Western Agricultural Economics Association.
- Park, Timothy A. & Florkowski, Wojciech J., 1996.
"Demand And Quality Uncertainty In Pecan Purchasing Decisions,"
16714, University of Georgia, Department of Agricultural and Applied Economics.
- Park, Timothy A. & Florkowski, Wojciech J., 1999. "Demand And Quality Uncertainty In Pecan Purchasing Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(01), April.
- repec:jaa:jagape:v:32:y:2000:i:1:p:89-94 is not listed on IDEAS
- Jordaan, Henry & Grove, Bennie, 2007. "Factors Affecting Maize Producers Adoption of Forward Pricing in Price Risk Management: The Case of Vaalharts," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(4), December.
- Rejesus, Roderick M. & Knight, Thomas O. & Jaramillo, Mauricio & Coble, Keith H. & Patrick, George F. & Baquet, Alan E., 2008. "Preference for Risk Management Information Sources: Implications for Extension and Outreach Programming," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 37(1), April.
- Jordaan, Henry & Grove, Bennie, 2008. "Factors affecting the use of forward pricing methods in price risk management with special reference to the influence of risk aversion," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(1), March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.