Marketing specialty corn contracts under uncertainty in Iowa

dc.contributor.author Fung, Man-Hoi
dc.contributor.department Economics
dc.date 2018-08-22T16:16:53.000
dc.date.accessioned 2020-06-30T07:54:00Z
dc.date.available 2020-06-30T07:54:00Z
dc.date.copyright Fri Jan 01 00:00:00 UTC 1999
dc.date.issued 1999
dc.description.abstract <p>The Farm Costs and Returns Survey reported that over {dollar}1 billion of corn production was under marketing contracts in 1993. Many would agree that the corn industry will be more truly end-user and demand oriented in the future and farmers are more interested in using marketing contracts to reduce their exposure to risk. This study analyzes three specialty corn contracts vs. producing regular commodity corn and it focuses attention on the net return per acre of these productions. The contracts evaluated are 1) Commodity price plus a premium (market plus contract), 2) Flat price per bushel, and 3) Flat payment per acre. A spreadsheet model was developed to compare the performance of the different contracts.;BESTFIT [superscript registered trademark symbol] was used to find the parameters of the distribution of prices and yields in Iowa for the past 18 years. Cost of production and uncertainty in price and yield were factored into a Monte Carlo simulation, which was carried out by using @RISK [superscript registered trademark symbol]. Yield sensitivity and net return distribution were evaluated using a modified safety-first approach of risk management.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/rtd/16644/
dc.identifier.articleid 17643
dc.identifier.contextkey 7327613
dc.identifier.doi https://doi.org/10.31274/rtd-180813-6621
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath rtd/16644
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/70406
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/rtd/16644/ISU_1218266.pdf|||Fri Jan 14 21:03:40 UTC 2022
dc.subject.disciplines Economics
dc.subject.keywords Economics
dc.title Marketing specialty corn contracts under uncertainty in Iowa
dc.type article
dc.type.genre thesis
dspace.entity.type Publication
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
thesis.degree.level thesis
thesis.degree.name Master of Science
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