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Risk Ratios and Hedging: Florida Feeder Cattle

Published online by Cambridge University Press:  28 April 2015

Ronald W. Ward  and
Gregory E. Schimkat
Ronald W. Ward
Affiliation:
Food and Resource Economics Department, University of Florida
Gregory E. Schimkat
Affiliation:
Food and Resource Economics Department, University of Florida
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Extract

Hedging livestock historically has been practiced mainly by midwestern and Great Plains producers because they are the dominant force within the U.S. cattle industry. Likewise, futures contract definitions and delivery points have been tailored to the needs of these producers. Recent growth in the feeder cattle industry in the Southeast, and particularly in Florida, suggests that greater hedging use may be applicable to southeastern producers. Interest in expanding the usefulness of the feeder cattle contracts to these growth regions is indicated by the recently established delivery point in Montgomery [2].

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 11 , Issue 1 , July 1979 , pp. 71 - 77
Copyright
Copyright © Southern Agricultural Economics Association 1979

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References

[1] Abbitt, B. and Otte, J.. The Economics of Winter Grazing of Lightweight Calves, Food and Resource Economics Department, Staff Paper 57, University of Florida, 1977.Google Scholar
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