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Dayton, IA | In my opinion, I would not look at crop insurance and marketing as an "either - or" decision.
- Pencil out your break even
-Buy a revenue insurance policy that protects as many dollars as your breakeven
-Market the amount of dollars that you are protected for by insurance
-Buy puts on the bushels that you plan on producing above your insurance guarantee
Doing this will guarantee that you will farm again next year. It will also assure that you get at minimum, these good prices we have now, and if lucky, higher prices later in the season.
My crop insurance costs about 20 cents per insured bushel at the 75% level. I try to buy Puts at 15-20 cents per bushel also on the uninsured bushels.
Helps me to have other people evaluate my decisions so let me know what you think.
A.J. | |
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Would you buy puts?
