Posted 5/27/2016 08:44 (#5323099 - in reply to #5322160) Subject: RE: Need information on price protection
Texas/New Mexico Stateline
Jim - 5/26/2016 17:57
Results of the advice in this thread so far:
- there is no price protection for the calf producer. The feeder calf board is apparently for specs, not producers.
- "concentrate on lowering inputs" so you can sell calves cheap enough to cattle feeders so THEY can lock in a profit when they purchase your cheap calves.
There has been plenty of advice for locking in price to those that aren't too blind to see it.
Plenty of good ways to protect the calf raisers from falling prices.
Easiest and least risky is the LRP. Small producers can buy insurance to set a floor price on the calves they raise. Whether it is 10 head or 500 head. Works like a put and will pay for falling prices. Rising prices you can capture the higher price. Just like buying puts for grain produced.
Video auctions are a good way if you are selling in truck load sized lots. You can be rewarded for your efforts on vaccination and uniformity. You will be protected from market volatility. Just like a cash contract on crops.
Need information on price protection
