A Comparison of the Effectiveness of Using Futures, Options, LRP Insurance, or AGR-Lite Insurance to Manage Risk for Cow-calf Producers

Dillon M. Feuz

No 53046, 2009 Conference, April 20-21, 2009, St. Louis, Missouri from NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: A comparative analysis was performed looking at using cash, futures, options, or insurance to manage the price of calves for cow-calf producer. Risk can be reduced with the futures market and with options or LRP insurance. Options and LRP insurance are equivalent in the amount of risk that is reduced. AGR-Lite does not appear to be an effective policy at reducing risk for cow-calf producers.

Keywords: Agribusiness; Agricultural Finance; Demand and Price Analysis; Farm Management; Financial Economics; Livestock Production/Industries; Research Methods/Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 13
Date: 2009-04
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:nccc09:53046

DOI: 10.22004/ag.econ.53046

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