I have expressed this opinion before and many may disagree but I think, for a farmer at least, futures and options are risk management tools, not profit centers. There is a cost involved in managing risk. So to answer your question, IMHO at least, if you can stand the risk of the market making your income fluctuate substantially, you will be dollars ahead in the long run to never use futures and options. I know that has been the case for me. If you use futures and options as a risk management tool to even out your income and make less highs and lows, realizing there is a cost involved in doing so, they can be good tools.

If you believe you can make money with futures and options, you believe you are at least smarter than the market average plus you have to be enough smarter to offset the commissions. Some people are. However if I believed I was, to a very large degree, I would quit farming and become a speculator. If you believe you have enough market knowledge and skill to outsmart the market average, then you can make money with futures. So why not do it as a business? Most farmers are not and therefore long term will come out on the short end of the stick.

Use futures for risk management. Forget them as a profit center.

My advice.

John