Optimal dynamic marketing strategies for grain producers: A case study of winter wheat
The purpose of this research is to determine and examine optimal grain marketing decisions utilizing a stochastic dynamic programming framework. Consideration is given to the linkages, stochastic nature, and dynamics of income taxes, current grain market conditions, the financial condition of the firm, marketing constraints of the producer and government programs. The stochastic dynamic programming model's objective function is to maximize the expected value of after-tax wealth. State variables considered in the analysis are (1) cash grain price, (2) basis level (futures minus cash), (3) before-tax income level, (4) grain storage level, (5) futures position, and (6) value associated with any futures position. The quantity of cash grain sales and futures transactions to occur each month are the decision variables considered in this analysis.
Year of publication: |
1989
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Authors: | Tronstad, Russell Eli |
Subject: | Agricultural |
Saved in:
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