Agricultural Finance and Market Price Relationships

None of the work that follows was completed while the occupant was ERS chair. However, it is listed as it remains an area of interest and related topics are very much relevant to Michigan agriculture. For example, how growers should and do make decisions regarding investments in tree fruit orchards is a topic that may warrant scrutiny.

Some of this body of work had to do with land valuation, including how technological choices affect such valuation.

  • Hennessy, D.A. “The Ricardian Rent and the Allocation of Land Under Uncertainty: Comment.” European Review of Agricultural Economics, 24 (2 1997):313-317. Link
  • Du, X., D.A. Hennessy, and W.M. Edwards. "Does a Rising Biofuels Tide Raise All Boats? A Study of Cash Rent Determinants for Iowa Farmland under Hay and Pasture." Journal of Agricultural and Food Industrial Organization, 6(2008). Article 7 of Special Issue in Memory of Bruce Gardner. Link
  • Du, X., and D.A. Hennessy. “Planting Real Option in Cash Rent Valuation.” Applied Economics, 44(6, 2012):765-776. Link

One paper has considered how planting choice can affect futures price volatility, providing a simple explanation for the Samuelson Hypothesis. 

  • Hennessy, D.A., and T.I. Wahl. “The Effects of Decision making on Futures Price Volatility.” American Journal of Agricultural Economics, 78(August 1996):591-603. Link

Others have regarded better understanding the merits of provisions in livestock marketing programs and support policies.

  • Hennessy, D.A., and Donald Lien. “Ledger Provision in Hog Marketing Contracts.” Agricultural Finance Review, 66(Spring, 2006):77-89. Link

  • Lien, D., and D.A. Hennessy. “Evaluating the Saskatchewan Short-Term Hog Loan Programs.” Canadian Journal of Agricultural Economics, 55(March, 2007):83-96. Link

Multi-market price, arbitrage and pass-through relations have been addressed in:

  • Zhao, H., X. Du, and D.A. Hennessy. “Pass-through in U.S. Beef Cattle Prices.” Empirical Economics, 40(April, 2011):497-508. Link

  • Hennessy, D.A. "Feeding and the Equilibrium Feeder Animal Price-Weight Schedule." Journal of Agricultural and Resource Economics, 31(August, 2006):239-261. Link

  • Lien, D., and D.A. Hennessy. “A Note on Price Futures versus Revenue Futures Contracts.” Journal of Futures Markets, 24(May, 2004):503-512. Link

  • Hennessy, D.A. “Substitution Between Revenue Futures and Price Futures Contracts.” Journal of Futures Markets, 22(4, 2002):387-391. Link

One paper has addressed how capital taxes affect asset mobility in agriculture.

  • Hennessy, D.A. “The Taxpayer Relief Act, Estate Planning, and the Mobility of Resources in U.S. Agriculture.” American Journal of Agricultural Economics, 81(August, 1999):534-543. Link

 

Finance & Risk Management

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