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Document Type

Thesis - University Access Only

Award Date


Degree Name

Master of Science (MS)

Department / School


First Advisor

Bashir A. Qasmi


The specific objectives of this study are: 1) to identify pre-harvest grain marketing strategies which can reduce net farm income variability. 2) to evaluate selected pre-harvest grain marketing strategies in terms of average annual return (over variable costs) and annual return variability. This study can provide some guidelines to help farmers market their crops more effectively. Selected pre-harvest hedging as well as option strategies, namely, purchase of a put option, a hedge, a hedge combined with a purchase of a call option, and a fence were analyzed. These strategies will be discussed in greater detail in chapter three. Cash sale at harvest was considered as a reference strategy to analyze both size and variability of net return. The study covered the crop years of 1979-1991. Since the soil and geographic conditions vary across the state, corn and wheat production in South Dakota is concentrated in different areas of the state. Accordingly, Codington and Lincoln counties were selected to represent corn production in Northeast and Southeast South Dakota, respectively. Similarly, Sully and Brown counties in Central and North Central South Dakota, respectively, were selected to represent spring wheat production in South Dakota. The findings of this research will provide farmers in South Dakota with an extra incentive to increase their marketing skills for all grains, not just those selected.

Library of Congress Subject Headings

Corn -- South Dakota -- Marketing
Wheat -- South Dakota -- Marketing




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