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Evaluating the Saskatchewan Short-Term Hog Loan Program

Donald Lien and David A. Hennessy

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: The Saskatchewan short-term hog loan program of 2002 provided a non-market credit line to participating hog producers. The repayment conditions for cash advances committed to by the provincial government depend on later hog prices, and so the program has derivative contract attributes. We model the contracts and use an estimated spot price stochastic process to establish summary statistics for producer benefits from the program.

New Economics Papers: this item is included in nep-agr
Date: 2005-02-24
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Published in Canadian Journal of Agricultural Economics, March 2007, Vol. 55, pp. 83-96.

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