Overview
Risk Management for Agriculture addresses the issue of price risk as a management function versus a marketing function. Price risks impact not only the marketing of a product but the cash flow and the overall financial health of the business. Derivatives such as futures contracts, options contracts, and swaps need to be viewed as tools that can be used individually or in combinations to control price risk. Each of these derivatives and subsequent combinations are examined closely and comprehensively within the text. Price forecasting is addressed as well as fundamentals of futures hedging and options hedging. A complete glossary of terms at the end of the text to help reinforce the terms that are used throughout. Although price risk is the focus of the text, there is also a chapter devoted to the management of other agricultural risks. Students and professionals will benefit from this text that takes a comprehensive, management approach to price risk.
Synopsis
Risk Management for Agriculture addresses the issue of price risk as a management function versus a marketing function. Price risks impact not only the marketing of a product but the cash flow and the overall financial health of the business. The use of derivatives such as futures contracts, options contracts, and swaps need to be viewed as tools that can be used solely or in combinations to control price risk. Each of these derivatives and subsequent combinations is examined closely and comprehensively within the text. Price forecasting is addressed as well as fundamentals of futures hedging and options hedging. There is a complete glossary of terms at the end of the text to help reinforce the terms that are used throughout. Although price risk is the focus of the text, there is also a chapter devoted to the management of other agricultural risks. Students and professionals will benefit from this text that takes a comprehensive, management approach to price risk.