ANALYSING FARMERS’ USE OF PRICE HEDGING IN-STRUMENTS: AN EXPERIMENTAL APPROACH

Friederike Anastassiadis, Jan-Henning Feil, Oliver Musshoff and Philipp Schilling

No 187361, 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 from German Association of Agricultural Economists (GEWISOLA)

Abstract: This paper analyses the influencing factors of farmers’ use of price hedging instruments (PHIs) based upon a discrete choice experiment with German grain farmers. A mixed logit model is used to determine whether farmers’ choices of PHIs against cash sales are influenced by their price expectation, their risk attitude and their available storage capacities. The results show that farmers with a price expectation below the actual price level have a higher preference for using PHIs against cash sales in general and that the individual degree of risk aversion can have a significant impact on farmers’ choices of a specific PHI. A generally lower preference of farmers with available storage capacities for using PHIs as assumed in many theoretical contributions in the literature, however, cannot be confirmed.

Keywords: Demand and Price Analysis; Farm Management (search for similar items in EconPapers)
Pages: 13
Date: 2014-09
New Economics Papers: this item is included in nep-agr, nep-dcm and nep-exp
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Related works:
Journal Article: Analysing Farmers’ Use of Price Hedging Instruments: An Experimental Approach (2015)
Journal Article: Analysing Farmers’ Use of Price Hedging Instruments: An Experimental Approach (2014)
Working Paper: Analysing farmers' use of price hedging instruments: an experimental approach (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:gewi14:187361

DOI: 10.22004/ag.econ.187361

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