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north central Oklahoma | Tut, I learn something more about insurance every time that topic comes up on the forum, and I thought I had a pretty good handle on it to start with. I think sometimes they confuse us for that very reason, but my agent has always ket me pretty much in the loop. Only other thing ya hafta watch is the adjuster, because they don't work for the farmer or yur agent, the work for the guys writing the checks and they only have one goal in mind most of the time and that is pay as little as possible.
If price tanks below $3, harvest price option would on RA would for sure pay it's way, and I would still be able to market my grain for the $4 put purchase, getting it back from exercising the put. A train wreck on corn down here foes not seem to make a big difference in supply, so if you guys end up with 300 bpa averages up there and we lose it, the price might go down. I could at least market what little we could salvage from a drought for the $4 I woud lock in with a put.
Picked a lot of 15 to 25 bpa corn in '06 here, everything croaked that year in this area. Oklahoma is pretty notorious for going from mild 80 degree June days to 100 degree plus days in July, right when we are filling grain.
All the news points to stable or higher corn prices, but I would never have imagined it would be here at $5 now at this time a year ago. Would hate to get caught with my pants down this September. 10 cents put costs are pretty cheap to me. | |
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Would you buy puts?
