An Economic Analysis of Risk Management Strategies for Alberta Beef Feeders PDF Download

Author: F. S. Novak
Publisher:
ISBN:
Category : Beef industry
Languages : en
Pages : 128

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Author: Brian S. Freeze
Publisher: Ann Arbor, Mich. : University Microfilms International
ISBN:
Category : Beef cattle
Languages : en
Pages : 552

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Book Description
Feedlot finishing of beef cattle in Southern Alberta involves income risk due to the variability of prices of feeders, feed and finished cattle. Several strategies are available to reduce this risk, including hedging of cattle on feed, participation in a Federal- Provincial government and producer established income stabilization program for finished cattle (National Tripartite Stabilization Plan) and diversification of production plans. This study evaluated the efficacy and interaction effects of these strategies in reducing net income variability in cattle feeding in Southern Alberta. Concerns that were addressed included: (1) whether participation in hedging or Stabilization would increase firm-level slaughter cattle output, (2) whether portfolio effects exist between production and marketing alternatives, (3) whether participation in Stabilization would reduce participation in hedging (4) whether hedging performance could be increased by hedging the Canadian dollar, and (5) whether privately supplied hedging versus publicly supplied Stabilization is better able to handle income risk in cattle feeding. The theory of decision making under uncertainty was reviewed to determine how to best incorporate the risk aspects of the feedlot, management problem. Expected Value-Variance (EV)and safety-first risk analyses were identified as frameworks for formulation of the feedlot management problem in a mathematical programming context. Using data from 1976-87, linear risk programming (MOTAD and Target MOTAD) models of the feedlot process were constructed to analyze the alternatives for reducing income risk. Results for the 1986-87 feeding year suggested that, at moderate levels of risk aversion, feedlot managers should maintain high levels of hedging of both live cattle and the Canadian dollar with moderate participation (25 percent of cattle on feed) in the Stabilization plan. Significant portfolio effects were present. Hedging, but not Stabilization, was found to increase firm-level output by increasing the average weight to which a group of cattle would be finished. Participation in Stabilization was found to reduce hedging participation by an average of 10 percent. Hedging of the Canadian dollar improved the performance of live cattle hedging. Whether hedging was better at reducing risk and maintaining income than Stabilization depended on the definition of risk.

Author:
Publisher:
ISBN:
Category : Agriculture
Languages : en
Pages : 612

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Author: Alberta. Dept. of Agriculture
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Author: United States International Trade Commission
Publisher:
ISBN:
Category : Beef cattle
Languages : en
Pages : 230

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Author: Duane E. Erickson
Publisher:
ISBN:
Category :
Languages : en
Pages : 260

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Author:
Publisher:
ISBN:
Category : Animal industry
Languages : en
Pages : 784

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Author: University of Manitoba. Department of Agricultural Economics and Farm Management
Publisher:
ISBN:
Category : Agriculture
Languages : en
Pages : 58

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Author: Wade H. Shafer
Publisher: Springer Science & Business Media
ISBN: 1461534747
Category : Science
Languages : en
Pages : 421

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Book Description
Masters Theses in the Pure and Applied Sciences was first conceived, published, and disseminated by the Center for Information and Numerical Data Analysis and Synthesis (CINDAS) * at Purdue University in 1957, starting its coverage of theses with the academic year 1955. Beginning with Volume 13, the printing and dissemination phases of the activity were transferred to University Microfilms/Xerox of Ann Arbor, Michigan, with the thought that such an arrangement would be more beneficial to the academic and general scientific and technical community. After five years of this joint undertaking we had concluded that it was in the interest of all con cerned if the printing and distribution of the volumes were handled by an interna tional publishing house to assure improved service and broader dissemination. Hence, starting with Volume 18, Masters Theses in the Pure and Applied Sciences has been disseminated on a worldwide basis by Plenum Publishing Cor poration of New York, and in the same year the coverage was broadened to include Canadian universities. All back issues can also be ordered from Plenum. We have reported in Volume 34 (thesis year 1989) a total of 13,377 theses titles from 26 Canadian and 184 United States universities. We are sure that this broader base for these titles reported will greatly enhance the value of this important annual reference work. While Volume 34 reports theses submitted in 1989, on occasion, certain univer sities do report theses submitted in previous years but not reported at the time.

Author:
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 508

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