A PREHEDGING STRATEGY FOR THE FEEDLOT OPERATION

Ronald W. Spahr and William J. Sawaya

Western Journal of Agricultural Economics, 1981, vol. 06, issue 01, 12

Abstract: During recent years, the feeder cattle industry has experienced financial instability. This paper provides a possible marketing strategy that may help reduce this financial instability by providing a Prehedging Strategy for the feedlot operator. The Prehedging Strategy establishes a dynamic hedge on the major factors of production of the feed lot operator and is shown to provide higher average returns and lower financial risk.

Keywords: Livestock Production/Industries; Marketing (search for similar items in EconPapers)
Date: 1981
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:wjagec:32076

DOI: 10.22004/ag.econ.32076

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