Strasburg, ND | CMN - 6/28/2024 05:55
Ya but you have to cover the margin until you get the physical grain sold, delivered, and the money in your bank account. Takes some deep pockets and/or an understanding banker to hold a 100,000-bushel hedge position (20 contracts) when the market goes the wrong way...don't ask me how I know.
Any Ag Banker should have enough brains to understand margin money for a hedge account. Otherwise you need a different Ag Banker. You need a separate line of credit dedicated soley to margin money/marketing. A $100 of margin money per acre is a good starting point. If it exceeds the $100 per acre it's rare. But the banker will understand and if they shut you down, you did something wrong on your end. |
Hedge Accounts - Nice Loan from the Market today
