IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Modelling Preferences of South African Grain Farmers for Adopting Derivative Contracts Using Discrete Choice Models

  • Elizabeth M. Ueckermann

    (Department of Economics, University of Pretoria)

  • James N. Blignaut

    (Department of Economics, University of Pretoria)

  • Rangan Gupta

    ()

    (Department of Economics, University of Pretoria)

  • J Raubenheimer

The authors of the present paper apply a discrete choice model to determine specific characteristics that influence South African grain farmers’ preferences in hedging against uncertainties. This is the first empirical study conducted in the country regarding such preferences of producers for adopting derivative contracting based on the survey data of Grain South Africa for the year 2006. By means of the application of separate binary logit models for each major grain commodity, this paper establishes that different grain farmers are significantly heterogeneous. The results also indicate that the preferences of grain farmers for adopting derivative contracting are mostly influenced by the farmers’ preference towards prediction of daily grain prices and market trends, farm size and geographic characteristics. From a policy perspective it has been indicated that the problems concerning food and income insecurity will be reduced if farmers can adopt derivative contracting on a large scale since the producers will then be able to produce the staple food on a continuous basis at a relatively profitable level.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200705.

as
in new window

Length: 15 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:pre:wpaper:200705
Contact details of provider: Postal: PRETORIA, 0002
Phone: (+2712) 420 2413
Fax: (+2712) 362-5207
Web page: http://www.up.ac.za/economics

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pre:wpaper:200705. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rangan Gupta)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.