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Crop Risks’ ongoing goal is to provide agricultural producers with the knowledge and means to develop and execute risk management plans that insure return of investment and, whenever possible, return on investment.
The CropRisk recommendations are based on this philosophy:
- Use a combination of price protection (preferably early price protection, if market conditions allow) and the appropriate crop insurance product to accomplish a total risk management strategy. The price protection may consist of cash sales, cash sales plus a call option strategy, or put options, depending on the market conditions at the time.
- Keep a sharp eye on the fundamentals as the season develops, realizing that technical indicators usually are the first to signal a change in market trends.
- When and if weather scares move the market higher have the courage to initiate or add to sales.
- Never forward contract more bushels than guaranteed under the crop insurance policy.
- Never recommend futures or option positions that might expose producers to a margin call.
Personnel
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