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north central Oklahoma | Mr. Tut,
I know there is a lot of negative input on put purchase on here, but in this part of Oklahoma, I think things are different enough that they may be of value. Our year in/year out potential for top yields are not what they are in the "I" states. Guarantees much lower also. Yes, I can have a good price floor in the first 45-50 bushel, but for a dime or a bit more, I can lock in at least a $4 floor, and with no basis, it's a real $4 floor here an what production I do have. The CRC/RA will pay for market drop at sales/harvest, but if the price tanked to below $3, I could have at least have some priced at $4. If price goes up, I only lost a dime.
Am I looking at this wrong? | |
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Would you buy puts?
