000177525 001__ 177525 000177525 005__ 20250206162655.0 000177525 0247_ $$2doi$$a10.22004/ag.econ.177525 000177525 037__ $$a968-2016-75626 000177525 037__ $$a968-2016-76640 000177525 041__ $$aeng 000177525 245__ $$aWhy do farmers have so little interest in futures markets? 000177525 260__ $$c2002-05 000177525 269__ $$a2002-05 000177525 300__ $$a6 000177525 336__ $$aJournal Article 000177525 520__ $$aA farm financial model with leverage and investment in two farm enterprises is specified. The model is extended to incorporate futures hedging and the Separation Theorem is used to show that optimal hedging is zero. The assumption of a risk-free asset is relaxed and, while this leads to a violation of the Separation Theorem, the result that optimal hedging is zero is maintained providing that futures markets are efficient. It is concluded that if capital markets are efficient then farmers will have little interest in futures markets except to speculate.© 2002 Elsevier Science B.V. All rights reserved. 000177525 546__ $$aEnglish 000177525 650__ $$aFarm Management 000177525 650__ $$aProduction Economics 000177525 6531_ $$aFutures markets 000177525 6531_ $$aSeparation Theorem 000177525 6531_ $$aHedging 000177525 700__ $$aSimmons, Phil 000177525 773__ $$q1$$o6$$tAgricultural Economics: The Journal of the International Association of Agricultural Economists$$j27$$k01$$dMay 2002 000177525 8564_ $$9103a2724-1c80-423e-b2f9-a2e48b028bec$$s557841$$uhttps://ageconsearch.umn.edu/record/177525/files/agec2002v027i001a001.pdf 000177525 887__ $$ahttp://purl.umn.edu/177525 000177525 909CO $$ooai:ageconsearch.umn.edu:177525$$pGLOBAL_SET 000177525 912__ $$nSubmitted by Jennifer Nelson (nels7877@umn.edu) on 2014-07-10T18:20:45Z No. of bitstreams: 1 agec2002v027i001a001.pdf: 557841 bytes, checksum: ebf59d9c9432bc361e5c09571e6a028f (MD5) 000177525 912__ $$nMade available in DSpace on 2014-07-10T18:20:45Z (GMT). No. of bitstreams: 1 agec2002v027i001a001.pdf: 557841 bytes, checksum: ebf59d9c9432bc361e5c09571e6a028f (MD5) Previous issue date: 2002-05 000177525 913__ $$aLicense granted by Jennifer Nelson (nels7877@umn.edu) on 2014-07-10T18:17:47Z (GMT): <center> <h2> Deposit Agreement </h2> </center> I represent that I am the creator of the digital material identified herein (&ldquo;Work&rdquo;). I represent that the work is original and that I either own all rights of copyright or have the right to deposit the copy in a digital archive such as AgEcon Search. I represent that in regard to any non-original material included in the Work I have secured written permission of the copyright owner (s) for this use or believe this use is allowed by law. I further represent that I have included all appropriate credits and attributions. I hereby grant the Regents of the University of Minnesota (&ldquo;University&rdquo;), through AgEcon Search, a non-exclusive right to access, reproduce, and distribute the Work, in whole or in part, for the purposes of security, preservation, and perpetual access. I grant the University a limited, non-exclusive right to make derivative works for the purpose of migrating the Work to other media or formats in order to preserve access to the Work. I do not transfer or intend to transfer any right of copyright or other intellectual property to the University. If the Deposit Agreement is executed by the Author�s Representative, the Representative shall separately execute the following representation: I represent that I am authorized by the Author to execute this Deposit Agreement on behalf of the Author. 000177525 980__ $$a968 000177525 982__ $$gAgricultural Economics: The Journal of the International Association of Agricultural Economists>Volume 27, Issue 1, May 2002