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Evaluation of business risk management strategies for hog production in Alberta (2008-2012)

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This paper assesses the magnitude of margin losses by Alberta hog producers in the period 2008 to 2012 that could have been reduced or avoided had they used certain business risk management... More ≫

Description

This paper assesses the magnitude of margin losses by Alberta hog producers in the period 2008 to 2012 that could have been reduced or avoided had they used certain business risk management strategies. Three price risk management strategies are analysed and compared to selling hogs in the cash market: routine hedging, selective hedging, and forward contracting. In addition, the Hog Price Insurance Program offered by Agriculture Financial Services Corporation is evaluated for the September 2012 hog contract settlement.

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