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A Comparison of the Effectiveness of Using Futures, Options, LRP Insurance, or AGR-Lite Insurance to Manage Risk for Cow-calf Producers

Author

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  • Feuz, Dillon M.

Abstract

A comparative analysis was performed looking at using cash, futures, options, or insurance to manage the price of calves for cow-calf producer. Risk can be reduced with the futures market and with options or LRP insurance. Options and LRP insurance are equivalent in the amount of risk that is reduced. AGR-Lite does not appear to be an effective policy at reducing risk for cow-calf producers.

Suggested Citation

  • Feuz, Dillon M., 2009. "A Comparison of the Effectiveness of Using Futures, Options, LRP Insurance, or AGR-Lite Insurance to Manage Risk for Cow-calf Producers," 2009 Conference, April 20-21, 2009, St. Louis, Missouri 53046, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:nccc09:53046
    DOI: 10.22004/ag.econ.53046
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    References listed on IDEAS

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    1. J. Frank & P. Garcia, 2009. "Time-varying risk premium: further evidence in agricultural futures markets," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 715-725.
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    1. J. Shannon Neibergs & Tipton D. Hudson & Chad E. Kruger & Kaelin Hamel-Rieken, 2018. "Estimating climate change effects on grazing management and beef cattle production in the Pacific Northwest," Climatic Change, Springer, vol. 146(1), pages 5-17, January.
    2. Unknown, 2022. "Western Economics Forum: A Journal of the Western Agricultural Economics Association, v.20, Issue 2, Fall 2022," Western Economics Forum, Western Agricultural Economics Association, vol. 20(2), December.
    3. Williams, Jeffery R. & Saffert, Andrew T. & Barnaby, G. Art & Llewelyn, Richard V. & Langemeier, Michael R., 2014. "A Risk Analysis of Adjusted Gross Revenue-Lite on Beef Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(2), pages 227-244, May.
    4. Haviland, Logan B. & Feuz, Ryan, 2022. "Livestock Risk Protection: Selecting Optimal Coverage Contracts for Producers," Western Economics Forum, Western Agricultural Economics Association, vol. 20(2), December.

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