This study examines the use of corn futures contracts to cross hedge both U.S. hay and New Mexico alfalfa hay. Correlations between monthly spot U.S. hay prices and corn futures prices ranged from .828 to .970 and were all significant at the alpha= .001 level. Multiple regression was used to...

Several hedging strategies for fat cattle are compared using actual feedlot performance information for a period of 6.5 years and 747 pens of fat cattle. Results show that cattle feeding was not profitable (a $24.50 per head cash market loss) but a carefully chosen hedging strategy could have...

This paper focuses on identifying shifts in the tax burden within agriculture associated with various flat tax proposals by comparing their effects on farms with different enterprise combinations, resource bases, and financial characteristics. In general, the flat tax imposes higher average tax...

This article discusses the application of a quadratic programming model to the bond and note participation decision of a Cooperative Farm Credit Bank. The model generates an efficient frontier of bond and note portfolios from which a bank can choose. The composition of these portfolios depends...

Firm-level simulation is used to analyze farm financial performance with adjustable-rate, adjustable-term, and fixed-rate financing. Adjustable-term financing is accomplished by changing the term of the loan, instead of payment size, when interest rates change. Simulation results indicate that...

This study of the farm firm integrates long run investment and financial decisions, and short-run production and marketing decisions into a single decision framework that includes both time and risk. The results suggest that the use of various strategies for managing market risks allow the...