Farmers make more use of financial tools, USDA says
30 Oct 2020
Cooperative Light & Power
For decades U.S. farmers have been advised to consider using marketing contracts, futures and options contracts to manage risk. A new study from the U.S. Department of Agriculture finds that many agricultural producers, particularly larger operators who raise corn and soybeans, are doing so.
In 2016, more than 156,000 farms used marketing contracts and more than 47,000 farms used futures or options to hedge price risks, according to the report from USDA's Economic Research Service, or ERS. The report, based primarily on data from the 2016 Agricultural Resource Management Survey, focused on corn and soybeans.