Transaktionskostnaders påverkan på inställningen till prissäkringsstrategier : en studie av gårdar med storskalig spannmålsproduktion
Abstract: Agricultural businesses are exposed to many risk factors. For grain producers there are substantial risks which may affect income and costs. One way for producers to protect themselves is by hedging, which will help to stabilize income earnings. Futures- and forward contracts is one way for producers to do that. When establishing contracts, a lot of resources are needed and may lead to extended costs. The decision making is affected by uncertainty, trust, and relationship-specific investments. Purpose of study is to create an understanding for how contract writing costs may influence the attitude to forward- or futures contracts and implementation. In order to support this aim; a multiple case study of eight farms with large-scale grain production was conducted. Information was gathered through qualitative interviews. The study has identified that transaction costs vary between futures- and forward contracts. Variation stems from two factors, uncertainty of grain prices and the ability to create a relationship with another actor. Substantial time and resources are needed for an understanding of grain markets, therefore very few farmers use future contracts. Forward contracts benefit from the ability to create long-standing relationships with another actor. These relationships are beneficial as they save time and resources, thereby reducing the perceived transaction cost compared to futures contracts. Therefore, it is perceived that transaction cost do have an impact when choosing between the two options, and why forward contracts is the most frequently used hedging strategy.
AT THIS PAGE YOU CAN DOWNLOAD THE WHOLE ESSAY. (follow the link to the next page)