Document Type

Article

Publication Date

5-15-1984

Keywords

agricultural economics, farm production, farm revenues

Abstract

Beginning in the Fall of 1984, agricultural producers and agribusinesses will be confronted with another dimension of the deregulation trend in American Industry. Options on domestically produced agricultural commodities once again can be traded. As the country debates the 1985 Farm Bill, producers and agribusinesses must be making every effort to be prepared for the possibility of greater dependence on the market oriented policies in agriculture. In a free market environment, options, and their associated strategies must be considered as part of producer and agribusiness market strategies. This paper describes the basic terms and types of options, examines two option trading strategies and discusses where commodity options fit in the alternative marketing strategies available to producers.

Publisher

Department of Economics, South Dakota State University

Series Number

84-3

Number of Pages

36

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