The University of Georgia's Beef Team is comprised of faculty members that are directly involved in beef cattle education. The goal of this team is to enrich the availability of beef cattle information for producers and County Extension Agents. View Extension publications on beef and the UGA Beef Team blog feed below.
In today’s farming environment of extreme price volatility and large debt commitments, most livestock producers need the security of one or more of the advantages offered by price risk management. Livestock producers who are selling products or purchasing inputs can do one of two things when making pricing decisions: accept the market price when they are ready to deliver products or purchase inputs, or reduce input and product price risks by using price risk management tools. One of these price risk management opportunities is available through futures markets contracts. This publication explains how livestock producers can use futures markets to manage price risk.
One of the greatest risks cattle producers face is price risk. Price changes can come in the form of declining cattle prices for sellers, increasing cattle prices for buyers or increasing feed prices for feed users. Because of this risk, producers might want to “insure” feeder cattle, fed cattle or feed against unfavorable price movements, while still being able to take advantage of favorable price movements. Cattlemen have this opportunity by using the commodity options market.
Understanding the concept of basis is a key element in developing a sound marketing plan. Basis refers to the relationship between a commodity’s cash price in a local market and its futures market price. A more formal definition of basis is the difference between the cash price and the futures price for the time, place and quality where delivery actually occurs. Even if a producer never uses the commodity futures market directly, knowledge of the basis can be of great value when making marketing decisions.
View other publications on Beef
error! OakAccess0000: Access denied
Mark you calendars now to join us for the 2nd Annual HERD Field Day in Alapaha on Wednesday, August 30th Early Bird registration is now available online! Online Registration Mail In Registration HERD Field Day Schedule
We are getting ready to start shipping cattle to participate in the Georgia Beef Challenge. If you are a producer and are interested in gaining information on your herds health, performance, and carcass merit please contact us today to get started! 16-17-Georgia Beef Challenge Rules The Annual Georgia Beef Challenge...
More Posts From the Blog