Lock in Low Rates with LIBOR futures

Most farmers know that they can hedge their corn, wheat or beans (or about any other agricultural commodity) using various types of futures contracts.  You can use the regular contract, options – both calls and puts, spreads, etc.

However, many farmers do not know that they can hedge their operating loans interest rates using LIBOR futures.  The Top Producer site has a quick good article on how this might work.

I believe that short-terms rates are about as low as they can get right now and it might be very prudent locking in your operating loan rate for 2010 or 2011 at a fairly nominal cost.