Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Extension Education

Cross-Hedging in the Classroom: Engaging Students Scholarly Extension Output

Joel Cuffey(a), Wenying Li(a), Wendiam Sawadgo(a), and Adam Rabinowitz(a)
Auburn University(a)

JEL Codes: A20, A22
Keywords: Cross-hedging, Extension education, undergraduate teaching

Publish Date: June 27, 2022
Volume 4, Issue 2

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Abstract

Topics covered by undergraduate agricultural economics courses often overlap with Extension educational needs. This paper describes an undergraduate class project that involved students in producing an Extension report. The project was designed as a collaboration between undergraduate instructors and Extension economists. The instructors targeted a set of concepts and skills for the students to practice, and the Extension economists advised the instructors on a particular issue using those skills relevant to local agriculture. This process resulted in analyzing the potential to cross-hedge peanuts with futures contracts from different commodities. Students were introduced to peanut marketing, cross-hedging, regression analysis, and how to write an Extension publication. In groups, students analyzed data and wrote a report. Group reports were evaluated by Extension economists, and one project was chosen to be published as a peer-reviewed Extension publication.

About the Authors: Joel Cuffey is an Assistant Professor at Auburn University (Corresponding author: cuffey@auburn.edu). Wenying Li is an Assistant Professor at Auburn University. Wendiam Sawadgo is an Assistant Professor at Auburn University. Adam Rabinowitz is an Assistant Professor at Auburn University. Acknowledgements: We thank Max Runge for providing necessary data for this project. The study was reviewed and approved by Auburn University’s IRB (Protocol 21-593 EX2112).

Copyright is governed under Creative Commons CC BY-NC-SA

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