On Commodities, Risk Management, And Derivatives (Manuscripts)
Academy of Accounting and Financial Studies Journal 2000, May, 4, 2
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ABSTRACT We often assume that risk is beyond the control of farmers. Farmers are exposed to weather, unpredictable changes in seed prices, tax rates, technology, fuel prices, chemical prices, and constantly changing commodity prices, Brorsen and Irwin (1996). However to some extent, farmers can control some of their risks by the use of financial instruments for hedging, Bessembinder (1992). Farmers can consciously affect the risk of their equipment by building in flexibility.
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