AGRC 113 Lecture Notes - Lecture 16: Information Asymmetry, Minneapolis Grain Exchange, Intercontinental Exchange
Document Summary
This might be difficult because without all the information needed to make a decision you cannot come to a conclusion very easily. Be upfront, tell the truth, share all needed information: definitions can be found within flash cards. Relevant lectures: risk management in agriculture, future markets. Definitions found in flash cards: how to measure risk, price correlation, yield correlation. Crop portfolio approach tells us we reduce risk when returns are not highly correlated with each other. Each party needs a counter-party to complete the trade. Prior to 1974, no restrictions on who could own farmland in saskatchewan. 1974, saskatchewan farm ownership act, prohibited non-sask residents from owning farmland here, non-residents limited to 160 acres after getting a pass from farm security. Board, current non-residents were grandfathered in and did not have to sell. 2002, the saskatchewan farm security act, brought ownership rules in sk closer to those in.
