PRICE RISK MANAGEMENT IN WHITE CORN PRODUCTION

White corn garners a premium over commodity corn, but suffers from additional price risk and yield drag. Using a simple bootstrap procedure, this research considers whether white corn premiums compensate for yield drag and evaluates the relative merits of various pre-harvest marketing alternatives including contracts, cross hedges, and cash sales.Crop Production/Industries, Risk and Uncertainty,

Appraising the value of irrigated cropland: considerations in the Lower Arkansas River Basin

March 2013.Includes bibliographical references (page 6).Agricultural land values, and the relative importance of individual characteristics in determining these values, is of longstanding interest to economists and of practical importance to agricultural real estate appraisers, loan officers and farm managers. The purpose of this document is to review the basic approaches to agricultural land appraisal, and then apply a subset of these approaches to value native rangeland, pasture, irrigated cropland for the Lower Arkansas River Basin. An imputed value of irrigation water is also discussed. The general methods of appraisal considered in the analysis include the market value and income approaches. Using data from 2005 to 2012, a general finding for irrigated cropland in southeastern Colorado appears to fall in a range of $1,964 to$3,183 per acre. Non-irrigated cropland values range $416 to$528 per acre. The capitalized value of a herd of 70 cow-calf pairs is $58,333 in the absence of a value for the cow asset. Note that these values may understate current market activity that is heavily influence by recent record high commodity prices and drought

MODELING PRICE IMPACTS OF BACKWARD VERTICAL INTEGRATION IN THE US PORK INDUSTRY

The U.S. pork sector is evolving from an industry of small, independent firms vertically linked by spot markets to one of substantially larger firms vertically connected through contractual agreements and integration. Potential benefits to this tighter vertical arrangement include lower consumer pork prices, although the true nature of this benefit is still under debate. At the same time, there is concern of market foreclosure because highly vertically integrated industry may prevent independent hog producers from having access to open markets in which to sell their output. The objective of this paper is to develop an econometric model to estimate the extent of backward integration by pork processing firms into the upstream hog production stage, taking into account the oligopsonistic nature of the processors, and to simulate the effect of vertical integration on consumer and producer prices and welfare.backward vertical integration, oligopsony, pork, Industrial Organization, Livestock Production/Industries,

Retail Meat Feature Pricing: Enhancing Meat-Case Revenues?

Retail meat managers have many pricing tools to encourage product purchase, including the feature price, syndicate price, and the percent discount. Given seasonal demands and a large, diverse set of meat cuts, meat managers may form strategic pricing groups when choosing the feature-price, syndicate-price, and percent-discount levels. This research inductively determines these groups using a principal-components method and examines the role feature pricing plays in determining the volume sold and syndicate price. Seemingly unrelated regression (SUR) models are used to simultaneously estimate the impacts of featuring strategy decisions among cluster groups.Demand and Price Analysis,

Description of agriculture production and water transfers in the Colorado River Basin

January 2011.Includes bibliographical references

Real option analysis. An overview of the process and how it can be applied to agribusiness, Part II

Incorrectly called ABMR 03-02 on piece.November 2003.Originally published under series title: Agribusiness financial report

Economic impact analysis of reduced irrigated acreage in four river basins in Colorado

December 2006.In this project, a rigorous economic accounting establishes the agricultural and economic demographics for four river basins in Colorado: the East Arkansas, East South Platte, Republican, and Rio Grande Basins. The IMPLAN software is utilized to develop an input-output model for each basin. Impact analysis is then performed on each model in order to approximate the economic effects of a reduction in irrigated acreage on each regional economy. Substantial differences between the regions exist, both in terms of impacts and multipliers, leading to the conclusion that any policy or program intending to mitigate the negative impacts of lost irrigated acreage should not be a one-size-fits-all solution, but rather would be most effective if tailored specifically to the affected region

Profile of the South Platte River Basin

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