PRICE VARIABILITY AND FINANCIAL RISK FOR SUGAR BEET GROWERS

William Nganje and Gwen Stoltman

No 36493, 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia from Western Agricultural Economics Association

Abstract: This paper develops a portfolio framework to characterize and analyze the impact of price risk faced by sugar beet growers in the Red River Valley and derives implications for capital markets. Other sources of risk incorporated in the analysis are yields and production cost. Results from stochastic simulation analysis reveal that sugar beet growers incur significant price and financial risk. The hypothesis that the loan rate for sugar truncates the distribution of net returns and protects growers against declining beets prices was not validated.

Keywords: Agricultural Finance; Crop Production/Industries (search for similar items in EconPapers)
Pages: 27
Date: 2000
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:waeava:36493

DOI: 10.22004/ag.econ.36493

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