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Optimal Cash Grain Sale, Storage, and Hedging Decisions for Grain Producers: A Stochastic Dynamic Programming Analysis

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  • Tronstad, Russell

Abstract

Optimal grain marketing decisions are given for different levels of cash price, basis (futures minus cash), before-tax income, grain storage, futures position, and value of futures position facing the firm. Results indicate that income tax considerations are very important in determining optimal cash grain sales and futures transactions.

Suggested Citation

  • Tronstad, Russell, 1989. "Optimal Cash Grain Sale, Storage, and Hedging Decisions for Grain Producers: A Stochastic Dynamic Programming Analysis," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270518, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea89:270518
    DOI: 10.22004/ag.econ.270518
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    References listed on IDEAS

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