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The Effect of Personal and Farm Characteristics upon Grain Marketing Practices

Published online by Cambridge University Press:  28 April 2015

James Sartwelle III ,
Daniel O'Brien ,
William Tierney Jr  and
Tim Eggers
James Sartwelle III
Affiliation:
Texas A&M University and Kansas State University, respectively
Daniel O'Brien
Affiliation:
Texas A&M University and Kansas State University, respectively
William Tierney Jr
Affiliation:
Kansas State University
Tim Eggers
Affiliation:
Specialist-Southwest Area with, Iowa State University
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Abstract

A survey of Kansas, Texas, and Iowa agricultural producers was taken to examine the factors affecting their grain marketing practices. Sales indices models and models of qualitative choice are used to determine whether marketers' choices of cash market, forward contract, or futures and options oriented marketing practices are significantly affected by their personal and farm business characteristics. Results indicate that geographic location, farm size, grain enterprise specialization, farming experience, use of grain storage, and use of crop insurance have significant effects upon the respondents' choice of grain marketing practices.

Keywords

agricultural optionscash marketingforward contractsfuturesgrain marketing practicesmultinomial logitTobit
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 1 , April 2000 , pp. 95 - 111
Copyright
Copyright © Southern Agricultural Economics Association 2000

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