Tillämpning av prissäkring i spannmålsodlingen : en jämförelse mellan svenska lantbrukare

Abstract: The grain market is facing substantial changes. Tradionally, cereal has been a supply-led market i.e. supply conditions have had a major impact on price level or indirectly, through market interventions implemented through the Common Agriculture Policy (CAP). Just a few years ago, Sweden and the EU were not affected so strongly by world market prices for cereals. EU was a surplus-area and to a substantial degree a local market. Today, the situation is different. Both countries and industries are competing for the world's grain which means that a major production area with a good harvest face many buyers. In a situation where market forces play an increasingly important role, price movements have become a major problem. A market that is constantly exposed to sharp price changes makes specific demands on the farmer's decision-making process and increases the importance of having access to the tools that guard against unwanted price changes. The purpose of this essay is to examine the factors that characterize farmers who use price risk management tools for cereals. More specific this work intends to examine the extent of and which factors affect the likelihood that a farmer uses price risk management tools. The study shows that tillable land and thereby, the aggregate risk exposure plays a crucial role in the farmer's choice to incorporate price risk management. The likelihood that a farmer hedges increases with experience. The same trend applies to the farmer's degree of market orientation. The study shows that farmers who choose to hedge their price risk exposure, feel that debt on the farm can be increased. In addition, they demand a higher return on equity. Farmers have different perceptions of price risk management. A farmer who uses forward/futures markets has a deeper understanding of the market and believes to a higher degree that their contracts enable them to exploit their entrepreneurial freedom in the market place. In addition, farmers who incorporate risk management tools in their business, have a stronger confidence in the risk reduction capacity of these instruments. In summary, one of the most prominent explanations to why farmers use hedging instruments is linked to management. Farmers that hedge are characterized by good managerial capacity. They are well informed about the markets, use external advice to a higher degree and receive higher yields although their production costs appear to be lower as indicated by stated reference prices.