New Futures Markets in Agricultural Production Rights: Possibilities and Constraints for the British and Dutch Milk Quota Markets

Journal of Agricultural Economics

Posted: 20 Feb 1998

Abstract

Farms are increasingly being affected by policies that involve production rights. Because of fluctuations in the prices of these rights in the spot market, farmers face a price risk. Establishing a futures market might enable them to hedge against this price risk. Rights futures have some features that differ from those of traditional commodity futures. This make them an effective and efficient tool for managing price risk. The implications of these findings will be illustrated for milk quotas in the United Kingdom and The Netherlands. Prior conditions which might make a futures market for milk quotas successful in both countries will be deduced.

JEL Classification: G13, Q13, Q14

Suggested Citation

Pennings, Joost M. E. and Meulenberg, Matthew T.G., New Futures Markets in Agricultural Production Rights: Possibilities and Constraints for the British and Dutch Milk Quota Markets. Journal of Agricultural Economics. Available at SSRN: https://ssrn.com/abstract=59788

Joost M. E. Pennings (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Matthew T.G. Meulenberg

Wageningen UR ( email )

Hollandseweg 1
6706 KN Department of Marketing and Marketing Research
Wageningen
Netherlands
31-317-482205 (Phone)
31-317-484361 (Fax)

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