Comparing the Risks and Returns of Alternative Price Risk Management Strategies for Southeastern Feeder Cattle Production

Nardi, Matias G.; Davis, Todd D.; Lacy, Curt; Prevatt, J. Walter; Hewitt, Timothy D.

Comparing the Risks and Returns of Alternative Price Risk Management Strategies for Southeastern Feeder Cattle Production

Autores

Descripción

A non-parametric simulation model incorporating price risk determined gross revenue less risk management costs for cow-calf, winter stockering, and retained ownership scenarios for cattle producers in the Southeast. Risk management scenarios simulated hedging with commodity futures and purchasing at-the-money put options at alternative dates prior to the expected sales date.