Researchers from European Commission Report Recent Findings in Risk Management (Marketing Contract Choices In Agriculture: the Role of Price Expectation and Price Risk Management): Risk Management

2021 OCT 07 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Risk Management have been published. According to news originating from Seville, Spain, by NewsRx correspondents, research stated, “We identify factors involved in the decision of farmers to use marketing contracts (pool, storage and forward contracts), and we explicitly account for the hedging and price-enhancement components of this decision.”

Financial supporters for this research include EI Purpan, Region Occitanie.

Our news journalists obtained a quote from the research from European Commission, “Using panel corner solution models (Tobit and double-hurdle) to represent farmers’ contracting decision using a sample of French cereal producers, we find that both the hedging and the price-enhancement motives are important factors driving marketing choices. When risk aversion or exposure to price risk rises, the price-enhancement motive becomes less influential.”

According to the news editors, the research concluded: “Farmers appear to be more reluctant to base their marketing decisions on their price expectations in that case.”

This research has been peer-reviewed.

For more information on this research see: Marketing Contract Choices In Agriculture: the Role of Price Expectation and Price Risk Management. Agricultural Economics, 2021. Agricultural Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Agricultural Economics - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1574-0862)

The news correspondents report that additional information may be obtained from Aymeric Ricome, European Commission, Joint Research Center, Seville, Spain.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/agec.12675. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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