A COMMODITY MARKET SIMULATION GAME FOR TEACHING MARKET RISK MANAGEMENT

The Market Risk Game is a computerized simulation game available for IBM PC and Apple II microcomputers that is designed to give realistic practice in making decisions in a risky market environment. It illustrates the use of hedging and put options to reduce risk in livestock and grain markets. It is best suited for individuals who have a basic understanding of commodity trading, but who need experience to solidify their knowledge to a functional level. Through the game this is done without facing the risk of an actual investment or requiring the time involved in watching a market over an extended period.Risk and Uncertainty,

A METHODOLOGY FOR ESTIMATING INTEGRATED FORECASTING/DECISION MODEL PARAMETERS USING LINEAR PROGRAMMING

A linear programming algorithm is used to estimate the parameters of a wheat storage decision model. This approach allows objective functions other than minimization of error squared to be used. It is demonstrated that by using a profit maximization objective function, an improved wheat storage decision model can be developed.Crop Production/Industries,

AN ANALYSIS OF THE IMPACT OF ALTERNATIVE PEANUT MARKETING QUOTAS AND SUPPORT PRICES

Demand and Price Analysis, Marketing,

ECONOMIC HOMOGENEITY OF GRADE CLASSIFICATIONS UNDER THE NEW AND OLD FEEDER CATTLE GRADING SYSTEMS

Livestock Production/Industries,

QUALITY OF PROFESSIONAL LIFE: FACULTY COMPENSATION AND APPOINTMENTS

The average real salary of agricultural economists has risen approximately 20 percent over the last two decades. Currently agricultural economists' salaries are approximately 6 percent above the average college of agricultural salary and 1 percent above the average of all university faculty. Over the last two decades agricultural economists' salaries have remained among the highest in the college of agriculture and their numbers have risen as a percentage of total agricultural faculty. Conversely our profession, and the college of agriculture in general, has experienced declines in salary levels and faculty numbers relative to average university salaries and total faculty numbers.Agricultural economics, Appointments, Faculty, Salaries, Teaching/Communication/Extension/Profession,

IMPACT OF ALTERNATIVE GRID PRICING STRUCTURES ON CATTLE MARKETING DECISIONS

Quality grade, yield grade, and other feedlot performance factors explain much of the variation in profit under grid pricing. Thus, feedlot owners can change profits by adjusting time on feed to influence these performance factors. This research uses growth models, logistic regression, and an optimization process to determine how the optimal number of days on feed changes under different grid pricing structures. It was found that large quality or small yield discounts increases the optimal number of days on feed and small quality or large yield discounts result in fewer days on feed. Losses associated with a grid having large quality discounts are minimized as cattle fed for more days are able to obtain Choice premiums despite the discounts for more Yield Grade 4 and 5 carcasses. Given small quality discounts, cattle fed for a shorter length of time can obtain the Yield Grade 1 and 2 premiums without a large loss in revenue due to grading Select or Standard. Under cash pricing, cattle are fed for very long periods because there are no discounts applied to the carcasses and, therefore, the more weight they gain, the more revenue they generate. During periods of low feed prices, cattle can be fed longer so more cattle grade Prime but also have more Yield Grade 4 and 5 cattle.grid pricing, profits, animal growth, logistic regression, days on feed, Livestock Production/Industries, Marketing,

GRAIN EXPORTS AS A SOURCE OF AGRICULTURAL INSTABILITY

International Relations/Trade,

THE DYNAMICS OF FEEDER CATTLE MARKET RESPONSES TO CORN PRICE CHANGE

A feeder-calf price model is estimated which incorporates elements of break-even budget analysis, including estimates of placement weights, slaughter weights, ration cost, and feed-conversion rates. From this model, a corn price multiplier is calculated which quantifies the corn/feeder-calf price relationship. Because the multiplier includes information on cattle weight, feed conversion, and ration cost, it also provides insight into how feeding programs are altered in response to corn price changes. Changes in feeding programs which occur in response to corn price changes are illustrated with dynamic simulation based on weight, ration cost, and price models presented here.corn, corn price multiplier, dynamic simulation, feeder cattle, Demand and Price Analysis,

ESTIMATED IMPACT OF NON-PRICE COORDINATION OF FED CATTLE PURCHASES ON MEAT PACKER PROCESSING COSTS

Stochastic simulation of daily slaughter level was used in conjunction with an estimated packing plant cost curve to assess potential reductions in processing costs due to improved vertical coordination between feedlots and packing plants. Results indicate that processing cost reductions of $1 to$5 per head may be possible. Savings result from ensuring a more stable processing volume that is near the plant's cost-minimizing level of production.cattle, cost curve, meat packing, vertical coordination, Industrial Organization, Livestock Production/Industries,

1978 peanut program, provided by the Food and Agricultural Act of 1977

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