Futures, Options, and Farm Programs: Report to Congress on a Study Mandated by the Food Security Act of 1985

Expanded use of futures and options markets by farmers can partly substitute for price support and deficiency payment programs in protecting farmers' incomes. Farmers can broaden their pricing alternatives and partly protect themselves against price declines within the year, but they can gain little interyear income stability by using futures, options, or cash forward contracts. Government programs to expand farmers' use of such contracts generally would not raise or stabilize market prices or farmers' incomes unless Government subsidies were involved. Such subsidies would be difficult to administer and offer few advantages over conventional loan and deficiency payment programs.


Issue Date:
1990-01
Publication Type:
Report
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/278261
Language:
English
Total Pages:
28
Series Statement:
AGES 9003




 Record created 2018-10-15, last modified 2020-10-28

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