FOA report suggests use of derivatives for EU farmers

Changes to the European Union (EU)'s common agricultural policy (CAP) due to take effect in 2007, will leave farmers in the continent more exposed to the world economic environment, creating more volatility in the market, according to a joint report by Futures and Options Association and Cass Business School.

As a result, the report suggested farmers in Europe should explore the possibility of using derivatives to hedge their risk.Co-author...