5) “Climate change and bio energy challenges for food and agriculture” (FAO report)
http://www.fao.org/fileadmin/templates/wsfs/docs/Issues_papers/HLEF2050_Climate.pdf
- How climate change affects agriculture
- Its effects on food security
Is there a
solution to
food
security?
What
innovations
can be
applied?
Confidence
in the food
markets -
possible?
- Green Revolution
- Fertilizers (tragya)
- Pesticides (novenyvedoszer)
- Future markets and contracts: parties agree to buy an asset on a future date at an agreed
price used for hedging out the risk. I.e. farmers get into future contracts so that they can
plan how much to plant. Livestock producers also enter such contracts to guarantee a fixed
price and to plan and to cover their feed costs. The contracts have finite lives (unlike equity
that can be held for ever). Futures are mainly used for hedging purposes, i.e. hedging
commodity price fluctuations, or for taking advantage of price movements. The buyer (who
is in long position) agrees to buy the commodity (i.e. wheat) at a fixed rate at a fixed date.
The seller (who is in short position), agrees to sell the commodity at the expiration date of
the contract.