This study explores the potential of routine preharvest cross-hedging of rough rice using wheat futures contract prices. A numerical simulation approach combined with risk efficiency analysis evaluates a wide range of cross-hedging alternatives. Results establish that farm-level cross-hedging can be considered a viable marketing alternative.

During the 1981-1982 season, seven grain elevator bankruptcies occurred in Louisiana resulting in significant losses to warehouse receipts and scale ticket holders, to creditors, and to owners of the elevators. Through a rigorous comparison of certain financial and operating ratios of those that failed with a sample of survivors, a procedure for evaluation and prediction of failures was investigated. Measures of liquidity, solvency, cash on hand, and the number of grains handled predicted six of the seven bankruptcies and survival for 19 of the other 22 f i i s in the sample. Similar results were obtained when applied to an out-of-sample population.

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