Cross-Hedging Refers to the Practice of Using One Form of Security

question 79

True/False

Cross-hedging refers to the practice of using one form of security to reduce risk on another form of security.

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Definitions:

Farm Policy

Encompasses government regulations and actions aimed at stabilizing or supporting the agricultural sector, including subsidies, price supports, and land use regulations.

Low Farm Income

An economic condition where farmers earn less revenue from their produce, often due to factors like falling prices, poor yields, or high costs of inputs.

Food, Conservation, and Energy Act

A federal law in the United States that governs agricultural and food policy, often known as the Farm Bill, encompassing aspects such as nutrition assistance, crop insurance, and conservation efforts.

Freedom to Farm Act

A U.S. law enacted in 1996 aimed at reducing government subsidies to farmers and allowing them more freedom in the crops they plant.