Financial hedging as a risk management mechanism in the agricultural sector in the conditions of global imbalances

Анотація

The article provides a comprehensive theoretical justification and practical framework for a financial hedging system as a strategic risk-management mechanism in the agricultural sector amid global imbalances and military uncertainty in Ukraine. It is established that under current globalization trends, hedging has evolved from a secondary tool into a strategically decisive element of risk management. This process converts market volatility into a controllable parameter, ensuring financial resilience and adaptability amid extreme uncertainty. The research proves that the growth in currency and interest rate derivatives trading reflects the strengthening role of financial instruments in the redistribution of systemic risks within the real sector. The authors highlight the scaling of digitalization through national AKIS (Agricultural Knowledge and Innovation System) and ePhyto-platforms as catalysts for reducing information asymmetry and transaction costs. It is argued that the investment attractiveness of the agricultural sector depends on a well-developed post-trade infrastructure, electronic agricultural notes, and modernized hedge accounting in accordance with international standards (IFRS 9, ASC 815). The study proposes a structured financial algorithm for implementing hedging that includes stages of risk identification (evaluating correlations between local prices and global exchanges such as CME or Euronext/MATIF), strategy selection, documentation, and continuous monitoring of effectiveness. The paper examines specific tools adapted to Ukrainian conditions, such as currency forwards, put options on grain, and interest rate swaps, while acknowledging limitations, including high premiums and bank counterparty risk during martial law. Future research focuses on methodological approaches to hedging environmental and climate risks within the context of the European Green Deal. This includes creating specialized financial instruments for carbon-neutral production and integrating Agri-PV technologies to simultaneously mitigate climate shocks, increase yields, and diversify incomes for agricultural producers. Keywords: stock market, finance, financial innovations, financial services market, insurance companies, financial instruments, insurance, derivatives, government credit programs, real sector, economic entities, financial assets, financial security, risks.

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