Case Study

Hedging Iceberg Lettuce Production: Palisade Software Determines Best Method for Managing Margins in Agriculture – Palisade

Hedging Iceberg Lettuce Production: Palisade Software Determines Best Method for Managing Margins in Agriculture – Palisade

Pages 6 Pages

Customers & Industries: Cal Poly University Industry: Agriculture, Academic Product(s): @RISK, StatTools Application: Financial risk management in agriculture Summary Since the Recession of 2008, US agricultural lenders and government regulators have recognized that many farm operators need to manage the risks to their margins, and free cash flows, rather than simply focusing revenue risks. Agribusiness experts from Cal Poly conducted a risk management analysis using @RISK, and found the 80% hedge ratio rule-of-thumb is not as eff ective as assumed. @RISK StatTools Home Customers & Industries Cal Poly University A finance professor brought the software in one day and said, ‘if you learn this stuff you’re going to make a lot of money,’ so I tried it out and found it to be a very useful tool

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