The farmer can fix the price of their product and want to know how many, if any, production must be insured. This is considered as the answer depends on factors such as confidence in how much will be produced, the relationship between prices and production, and risk aversion farmer. This case gives an analysis of how hedging policy should change reflects the different behavior of the variables that affect the results. "Hide
by Samuel E injuries Lee Fiedler Source: Darden School of Business 3 pages. Publication Date: 10 September 2002. Prod. #: UV4002-PDF-ENG