Using Futures Options or LRP Insurance to Manage Feeder Cattle Price Risk
from the Farm Management Wiki
Agricultural markets are very risky. Wyoming feeder cattle prices declined more than $11/cwt. between October and November 2006.
In the 5 years prior to 2011 the difference between October and November feeder cattle prices was less than $25 per head. Sharply increasing grain prices during the fall of 2006, contributed to this sharp decline in feeder cattle prices.
Click here
to access a presentation that covers the the risk management alternatives using futures markets, options markets or Livestock Risk Protection (LRP) insurance to help mitigate these sources of market risk for cattle producers in Wyoming.
Click here to access a fact sheet that covers the the risk management alternatives using futures markets, options markets or Livestock Risk Protection (LRP) insurance to help mitigate these sources of market risk for cattle producers in Wyoming.
Click here to access the Cow-Calf Risk Analysis Tool that compares expected returns using Cash marketing, a Futures hedge, buying a Put Option, buying LRP Feeder Cattle Insurance, or insuring the ranch with AGR-Lite Crop Insurance.
Agricultural markets are very risky. Wyoming feeder cattle prices declined more than $11/cwt. between October and November 2006.
In the 5 years prior to 2011 the difference between October and November feeder cattle prices was less than $25 per head. Sharply increasing grain prices during the fall of 2006, contributed to this sharp decline in feeder cattle prices.
Click here
to access a presentation that covers the the risk management alternatives using futures markets, options markets or Livestock Risk Protection (LRP) insurance to help mitigate these sources of market risk for cattle producers in Wyoming.Click here
to access a fact sheet that covers the the risk management alternatives using futures markets, options markets or Livestock Risk Protection (LRP) insurance to help mitigate these sources of market risk for cattle producers in Wyoming.Click here
to access the Cow-Calf Risk Analysis Tool that compares expected returns using Cash marketing, a Futures hedge, buying a Put Option, buying LRP Feeder Cattle Insurance, or insuring the ranch with AGR-Lite Crop Insurance.![[toggle]](javascript:icntoggle('mod-Application_Menul2','module.png'); "[toggle]"){kind=small}