Epsilon Archive for Student Projects

Abstract

The thesis aims to investigate the farmer’s perception of currency hedging and interest
rate bonds and to investigate the farm size of companies categorized by number of acres,
has no effect on this. The work also aims to gain an insight into what active farmers
consider to be important what to consider when they choosing a bank and a personal
banker.

The work is based on the survey and has been supplemented by a literature review on the
subject. For the survey were selected out randomly 50 farmers with Agriculture and
Rural Management education.
The requirement of the farmers was that they should be farmers by profession, and also
made sure that the farmers of various sizes came with. We got a total of 32 responses
within the set response time we said, which was better response than we expected.
When the final result came we ranged the farms in a size range.

We found out that all farmers in the study diligently follow the market and are easy to
assimilate new ideas, providing opportunities to profitability of their business with the
different instruments that are available on both the financial level and farm level.
The investigation revealed that the major in favor of having a personal banker.

They think it´s good to have a special plug to turn to who has knowledge and experience
of how the agriculture sector operates. If the personal banker would switch bank the
majority would remain at their old bank if the bank could replace the banker with an
equivalent banker. The majority of the farmers in this thesis with farms in the size range
of 251- 500 hectares that they would comply with their personal banker if he/ she would
switch bank.

Of those who have gone on the seminar on currency hedging and the like, over 85%
decided to hedge all or part of payment, while it was 65% which was hedged by those
who had not attended a seminar or similar.
In addition, investigation showed that many farmers are at a low rate fixed interest rates
on their mortgages and many planned to remain at the level they are currently in force
bound / floating interest rate.
The question that received the greatest response was spread on farms wanted payment
paid in Euros or in SEK.
Finally it emerged from the survey that farmers are generally good at following the
trends and have good eye on what's happening in the market, and they are often quick to
embrace the new ideas.
The farmers thought we missed that question on focused mortgage, leasing, financing of
machinery and futures on fertilizer and seed.