This paper examines the optimal production and hedgeable decisions of a risk- averse farmers facing both hedgeable price risk and non-hedgeable income risk. While the separation property holds in this context, the full-hedging property does not. The correlation between the non-hedgeable income risk and the hedgeable price risk is pivotal JEL: F21
Udo Broll and 2Kit Pong Wong . Farmer`s Income from Production and Financial Assets.
DOI: https://doi.org/10.36478/pjssci.2003.148.149
URL: https://www.makhillpublications.co/view-article/1683-8831/pjssci.2003.148.149