Finansiella instrument för svenska lantbruksföretag : riskhantering och finansiella instrument för lantbruksföretag i Sverige

Sammanfattning: The survey describes a number of risks that Swedish farming companies are exposed to. The risk areas covered by the survey are currency risks, price risks and financial risks. The survey further describes why these risks have a great impact on the future development of the farming companies. The survey highlights the interrelation between the risks and the measures which can be used to minimize the risks, so-called financial instruments. The aim of the survey is to put focus on above mentioned risks and describe how these risks can be reduced to prevent the Swedish farming industry from stagnating in the future. The survey is a secondary survey whereby existing knowledge about risks and risk management is applied to farming companies. The written information on price risks and hedging is primarily derived from foreign sources. Swedish sources have been used for the text on currency risks and funding of capital. The survey describes a number of financial instruments that counteract the currency risks and price risks as well as the problems associated with funding of capital. The effects of using currency futures and options as a means of minimizing currency risks are demonstrated. Furthermore, hedging of agriculture related futures and options on commodity exchanges as a means of minimizing price risks are described. Finally, the advantages of using financial instruments for funding of capital are discussed. The financial instruments considered for funding of capital are factoring, leasing, caps & floors and interest rate swaps. The market for agriculture related futures and options is still limited in Sweden. One reason is that the market is regulated by the common European agricultural policy which affects the prices through EU substitutions and interventions. By de-clutching the EU substitutions the price fluctuations for goods can increase and generate a greater need for price risk management tools. Currency risks and risks associated with funding of capital are today managed by Swedish banks. A currency market is generated through Swedish companies active in foreign trade and through Swedish banks selling currency futures and options. The funding of capital is regulated by law. The fact that the capital market is de-regulated has made life easier for the Swedish farming companies the last ten years. Methods exist to effectively raise capital through borrowing of securities or through financing via financial institutions.