Extension Number

ASL R1504

Topic

Management/Economics

Publication Date

1998

Abstract

In addition to futures and options markets, long-term risk sharing hog procurement contracts offered by packers provide some degree of price risk protection for pork producers. The window contract and a moving average hedging strategy generated similar average returns and level of profit risk protection. The cost-plus contract provided a greater degree of risk protection from prices below cost of production and used a ledger account to ensure that prices average the same as the cash market over the long run.

Copyright Owner

Iowa State University

Language

en

File Format

application/pdf

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