Taming agricultural risks

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Oppedahl, David B.;
  • Journal: Chicago Fed Letter, issue Jan

On November 19, 2013, the Federal Reserve Bank of Chicago held a conference to explore the key risks faced by agricultural producers and lenders, as well as the risk-management tools available to them, in today’s volatile environment.
  • References (5)

    1 The Seventh Federal Reserve District comprises all of Iowa and most of Illinois, Indiana, Michigan, and Wisconsin.

    2 Under these agreements, the USDA provides insurance against the financial risk posed by claims on crop insurance policies sold by private insurers. For details, see www.rma.usda.gov/pubs/ra/.

    3 A futures contract is a contract that obligates the buyer to buy an asset (or the seller to sell it) at a predetermined future date and price.

    4 An option is a contract giving its owner the right, but not the obligation, to buy or sell a particular asset at a speciefid price on or before a speciefid date.

    5 See www.federalreserve.gov/bankinforeg/ srletters/sr1114.htm.

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