The objective of this paper is to develop a cross hedging model for rice that minimizes basis risk and accounts for the existence of the nonstationary nature of basis. Basis is treated as an endogenous variable and model for basis risk are developed.

An expected utility model and a chance constrained linear programming model were used to analyze four marketing strategies and seven crop insurance alternatives in cotton marketing in Georgia. The results obtained suggest that the existing marketing tools and insurance alternatives can be used...

Research on rollover hedging for agricultural commodities has focused on the consequences of using existing contracts to substitute for missing long-term contracts. It appears that some grains are candidates for rollover hedging while livestock is not. Cotton was analyzed to evaluate the...