An Investigation of Effective Factors on Participation of Farmers in Tomato Futures Market

Document Type : Research Article

Authors

• A. Ghadiri Moghadam ¹
• A. Nemati ²

¹ Dept. of Accounting, College of Accounting and Management, Islamic Azad University of Mashhad Branch

² Dept. of Agricultural Economic, College of Agriculture, Ferdowsi University of Mashhad

10.22067/jead2.v1390i3.10846

Abstract

Abstract
One of the major risks in the agricultural sector is the price fluctuations risk of agricultural products. Futures markets for agricultural products as one of the policies and executive approach have a significant impact on reducing price fluctuations of agricultural products. So in this study, In this study the factors affecting farmers likely to participate in the future market for product sale by using cross-sectional data from 90 tomato farming Mashhad in 2009- 2010 with using of logit model estimated were analyzed. This study result shows that the firstly Hedge ratio of this product to sample between -1.25 to 5.63 variables and secondly the optimum Hedge ratio of 0.03 is. In addition to results logit model show that the age farmers and farmer debt, the statistically significant and positive effect on the probability of having farmers participate in the futures market and cultivation area, how to sell product and coefficient price changes in cash market variables to have statistically significant and negative effect on the probability participation in the futures market are farmers. The results of suggested were considered. According to the results, increase awareness of all age groups farmers, through the expansion educational and extension classes and motivate small-scale farmers (target groups) to use this market suggested.

Keywords: Futures Market, Cash Market, Mashhad, Tomato, Hedge Ratio

20.1001.1.20084722.1390.25.3.12.6

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