EconPapers    
Economics at your fingertips  
 

Dynamically Optimal After-Tax Grain Storage, Cash Grain Sale, and Hedging Strategies

Russell Tronstad and C. Robert Taylor

American Journal of Agricultural Economics, 1991, vol. 73, issue 1, 75-88

Abstract: This article utilizes a stochastic dynamic programming (SDP) model that considers the state variables of (a) before-tax income, (b) grain storage, (c) quantity of futures position, (d) value of futures position, (e) wheat price, and (f) basis level. Decision variables are monthly cash grain sales and futures market transactions. In comparing the post-sample performance of SDP to other marketing strategies over a four-year period, SDP resulted in $5,961 to $25,021 more wealth than the other strategies considered. Also, these other strategies yielded a standard deviation of after-tax income that was 30% to 621% greater than that from the SDP framework.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.2307/1242885 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:73:y:1991:i:1:p:75-88.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press () and Christopher F. Baum ().

 
Page updated 2022-01-25
Handle: RePEc:oup:ajagec:v:73:y:1991:i:1:p:75-88.