Selective hedging strategies for cattle feeders
1978
Erickson, S.P.
Cattle producers, at best, have been faced with minimal profit margins in the past few years. alternate marketing techniques are being examined by feedlot operators. several selective hedging strategies are outlined here, ones hypothesized to stabilize income and increase net returns. comparisons utilizing average returns and variance of returns are evaluated for hedging and cash marketing. this analysis illustrates that use of the live beef cattle futures market may be a viable marketing alternative for producers.
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