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A Regional Comparison of Risk-Efficient Soybean Marketing Strategies

Published online by Cambridge University Press:  09 September 2016

Cathy S. McKinnell ,
Kandice H. Kahl  and
Charles E. Curtis Jr
Cathy S. McKinnell
Affiliation:
Economic Research Service, USDA
Kandice H. Kahl
Affiliation:
Department of Agricultural Economics and Rural Sociology at Clemson University
Charles E. Curtis Jr
Affiliation:
Department of Agricultural Economics and Rural Sociology at Clemson University
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Abstract

Risk-efficient portfolios from a subset of marketing strategies were identified using Target MOTAD. Portfolios were generated for Illinois, Arkansas, and South Carolina to determine whether regional price and yield characteristics affected the optimal marketing strategy selection during 1972-1985. The results support previous conclusions that the risk borne when following a combination of marketing strategies was less than the risk of any single marketing strategy examined. The results also show that the marketing strategies representing efficient risk-return combinations for a producer in one region were different from the efficient risk-return combinations for a producer in another region. Therefore, generic marketing advice would have produced results less preferred in one region than in another.

Keywords

Target MOTADrisk-efficient portfoliofutures and options contractshedging
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 22 , Issue 1 , July 1990 , pp. 167 - 176
Copyright
Copyright © Southern Agricultural Economics Association 1990

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