Seasonal variability, land values and willingness-to-pay for a forward wheat contract with protein premiums and discounts

Robert Fraser

    Research output: Contribution to journalArticle

    8 Citations (Scopus)

    Abstract

    This article investigates the impact of a protein premiums and discounts system on the income stream from growing wheat. Based on a biological relationship between protein and yield in uncertain seasonal conditions, it shows that such a system reduces the expected level and variability of wheat income. It is subsequently argued, using a numerical analysis, that protein payments affect both the attraction to wheat growers of forward contracts and the value of land used for wheat. The nature of both of these impacts is related to the level of seasonal variability affecting the land. Consequently, wheat growers in the more unreliable regions of the wheatbelt may have been particularly disadvantaged by the system.
    Original languageEnglish
    Pages (from-to)139-155
    JournalAustralian Journal of Agricultural and Resource Economics
    Volume41
    Issue number2
    DOIs
    Publication statusPublished - 1997

    Fingerprint

    Dive into the research topics of 'Seasonal variability, land values and willingness-to-pay for a forward wheat contract with protein premiums and discounts'. Together they form a unique fingerprint.

    Cite this