Answer to: What is the difference between a price ceiling and a price floor? What effect is the same for both a price ceiling and a price floor? By...
The buyer or seller may have been using futures to hedge, or protect, their business against adverse price swings—say, a farmer seeking to lock in a specific corn price before the actual harvest. Futures can be also used to speculate on the price of a commodity or on the direction of ...
When I mention we raise waxy corn on our farm I'm often asked, "What is waxy corn?" In this post I explain what it is and why we grow waxy.
“Purchasing the peeled Yukon potatoes equals a savings of about four man-hours per day for the year. This equals over 1400 hours in a year. The labor cost savings based on the above hours saved is obviously substantial. The part that is hard to put a dollar amount on is how those sav...
In the four months while the plant was idle, the local basis averaged 15 cents per bushel less than in the month immediately preceding the idling. The RFA analysis also compared the corn price at the local Fairmont elevator to a national cash corn price index maintained by DTN. Compared to...
An implicit cost or imputed cost is the opportunity cost that is incurred when a producer uses a factor already owned by them in the primary production process, and therefore, gives up the value that particular factor could have generated otherwise....
About 60% of the propane that's produced comes from natural gas wells. The rest is a byproduct of crude oil refining. The price of propane fluctuates seasonally and like all energy sources has been rising in price. Propane has been used since the 1930s, so it has a long history as a...
corn hovering just above $4 per bushel, you will want to make sure you take cost into account. Check here for achartof corn fungicides which will tell you how well they work on a given disease and the PHI. This will also be handy for you as you consider application later in th...
Suppose a producer has an abundant supply of soybeans and is concerned that the commodity’s price will drop soon. To hedge the risk, the producer negotiates with a financial institution to sell three million bushels of soybeans for $6.50 per bushel in six months. Both parties agree to set...
Meanwhile, if an investor owns a put option to sell XYZ at $100, and XYZ’s price falls to $80 before the option expires, the investor will gain $20 per share, minus the cost of the premium. If the price of XYZ is above $100 atexpiration, the option is worthless and the investor...