January, 2010
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Does Your Banker Understand Hedging
For a farmer to be successful in using a hedging strategy, they must have an agricultural lender that understands and promotes hedging. Many lenders are willing to finance margin accounts for bonafide hedgers since they understand that the farmer is reducing their exposure to pricing risk. Some will also lend a larger percentage of the […]
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Hedging vs. Forward Cash Contracting
Most ag grain producers are able to lock in prices by using either a hedge or a forward contract. Forward cash contracting involves a commitment to deliver grain to a grain buyer at a future time. Both alternatives can be used to: price before and after harvest; establish a return for storage of grain; and […]
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End of Year Reflections
The idea for this blog was a glimmer in my mind at the end of 2008. While surfing on the web, I found the Golden Practices web-site that listed different industry specific blogs. This spurred me to action and with their help, we had a fully up and running blog site in the first quarter […]