| Abstract |
Agricultural producers face significant price risk. For some products, farmers may hedge this risk in well-functioning futures markets.
For several pruducts, however, no such risk management instrument is readily available. We suggest that farmers reduce price risk by organizing
cooperatives where members diversify by creating "accounting" portfolios. The approach is illustrated with data from the Dutch flower
market, and some practical problems connected to such a cooperative risk pooling in agriculture are addressed. |
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