@article{Mofokeng:161465,
      recid = {161465},
      author = {Mofokeng, Maine and Vink, Nick},
      title = {Factors Affecting the Hedging Decision of Maize Farmers in  Gauteng Province},
      address = {2013},
      number = {309-2016-5238},
      pages = {13},
      year = {2013},
      abstract = {The maize industry in South Africa has a long history of  government intervention, fuelled by the two Marketing Acts  (of 1937 and 1968). After the introduction of the Marketing  of Agricultural Products Act (Act 47 of 1996), farmers were  exposed to international maize prices, i.e. to the forces  of global supply and demand. Through forward contracting  (hedging), farmers can minimize the price risk that they  are facing. Different factors affect the hedging decisions  of farmers. The main objective of this study was to  identify those factors for maize farmers in Gauteng, and  hence to gain an understanding of their rate of adoption of  hedging strategies. A Probit regression equation was  estimated, and the results show that the factors that have  the most influence are the gender, age, and agricultural  qualification of the principal decision maker; whether the  decision maker is a member of a grain association and the  size of that grain association; the length of period that  the decision maker has been producing grain; the size of  the farm; whether the farmer rents in land; the proportion  of off-farm income earned; and whether the farmer takes out  insurance.},
      url = {http://ageconsearch.umn.edu/record/161465},
      doi = {https://doi.org/10.22004/ag.econ.161465},
}