@article{Simmons:177525,
      recid = {177525},
      author = {Simmons, Phil},
      title = {Why do farmers have so little interest in futures  markets?},
      journal = {Agricultural Economics: The Journal of the International  Association of Agricultural Economists},
      address = {2002-05},
      number = {968-2016-75626},
      pages = {6},
      year = {2002},
      abstract = {A farm financial model with leverage and investment in two  farm enterprises is specified. The model is extended  to
incorporate futures hedging and the Separation Theorem  is used to show that optimal hedging is zero. The  assumption of a
risk-free asset is relaxed and, while this  leads to a violation of the Separation Theorem, the result  that optimal hedging is zero
is maintained providing that  futures markets are efficient. It is concluded that if  capital markets are efficient then farmers will
have little  interest in futures markets except to speculate.© 2002  Elsevier Science B.V. All rights reserved.},
      url = {http://ageconsearch.umn.edu/record/177525},
      doi = {https://doi.org/10.22004/ag.econ.177525},
}