A Multi-Disciplinary Approach For Determining Adoption Of Agricultural Price Risk Management Strategies

Australian wool producers have been slow to adopt price risk management strategies to stabilise the income from their wool sales. The highly volatile auction system accounts for 85% of raw wool sales while the remainder is sold by forward contract, futures and other hedging methods. Qualitative analysis was used to find behavioural factors associated with the adoption of price risk management strategies (specifically futures and forward contracts) for selling raw wool. Consideration was given to Diffusion of Innovations and the Theory of Planned Behaviour as theoretical frameworks in order to answer the research question: Are there any non-traditional behavioural factors that need to be incorporated into existing frameworks to determine adoption of price risk management strategies for selling raw wool? In contrast to these prominent theories, data from four focus groups conducted with wool producers in regional Western Australia showed that trust, habit and social cohesion were the major behavioural determinants that governed the adoption of price risk management strategies. The significance of this paper lies in its multi-disciplinary approach to understanding the dimensions of farm-level decision making.Qualitative analysis, trust, habit, social cohesion, forward contracts, wool., Agricultural Finance, Risk and Uncertainty,

A Multi-Disciplinary Approach For Determining Adoption Of Agricultural Price Risk Management Strategies

Australian wool producers have been slow to adopt price risk management strategies to stabilise the income from their wool sales. The highly volatile auction system accounts for 85% of raw wool sales while the remainder is sold by forward contract, futures and other hedging methods. Qualitative analysis was used to find behavioural factors associated with the adoption of price risk management strategies (specifically futures and forward contracts) for selling raw wool. Consideration was given to Diffusion of Innovations and the Theory of Planned Behaviour as theoretical frameworks in order to answer the research question: Are there any non-traditional behavioural factors that need to be incorporated into existing frameworks to determine adoption of price risk management strategies for selling raw wool? In contrast to these prominent theories, data from four focus groups conducted with wool producers in regional Western Australia showed that trust, habit and social cohesion were the major behavioural determinants that governed the adoption of price risk management strategies. The significance of this paper lies in its multi-disciplinary approach to understanding the dimensions of farm-level decision making

Selling raw wool by forward contract: A qualitative analysis of the pros and cons

Australian farmers have been warned of increases in wool auction price fluctuations since 2000 (Kingwell), yet 85% of producers continue to sell their wool on the highly volatile, open-cry auction system (Bolt 2004). It has been suggested that forward selling is one method available to farmers to manage price risk and stabilise income (Liddle 2004). This research is a qualitative analysis of the pros and cons for forward contracting. Focus groups were conducted in regional Western Australia to gather the opinions of wool producers to assess why this selling method, despite its advantages, is over-shadowed by the auction system. Results suggest that income stabilisation and price risk management were the two major pros of the forward contract method of selling raw wool although these were strongly over-shadowed by the list of cons: pricing, complexity, dominance of the auction system and production risks

Fenugreek seed powder protects mice against arsenic-induced neurobehavioral changes

The current study was designed to evaluate the protective effect of fenugreek seed powder against As-induced neurobehavioral and biochemical perturbations using a mouse model. Mice exposed to arsenic at 10 mg/kg body weight showed development of anxiety-like behavior and memory impairment compared to control mice in elevated plus maze and Morris water maze tests, respectively. A significantly decreased acetyl and butyrylcholinesterase, superoxide dismutase and glutathione reductase activities and brain-derived neurotrophic factor levels were found in the brain of arsenic-exposed mice compared to control mice. Interestingly, supplementation of fenugreek seed powder to arsenic-treated mice significantly restored the activity of cholinesterase and antioxidant enzymes (e.g. superoxide dismutase, glutathione reductase) as well as brain-derived neurotrophic factor levels in the brain tissue of arsenic-exposed mice. Consequently, reduced anxiety-like behavior, improved learning and memory were observed in fenugreek supplemented arsenic treated mice compared to only arsenic-exposed mice group. Thus, this study suggests that fenugreek seed powder reduces arsenic-induced neurotoxicity in mice