Red River Valley | BTW here it is
JUST LEARNING - 1/29/2015 21:41
Speculating is a legalized form of gambling. It's only legal because it aids large corporations. Its not in place to help producers, only to remove risk from farmers who are not financially sound enough to weather bad years. Dirt farmers (not paper farmers) would be better off not using hedges. The system is similar to insurance companies, the insured over a lifetime pays several times the value of the insurable. If a producer would build 2 years worth of storage and have enough operating cash to plant 2 crops he would be much better off than guys using hedges. I can't imagine how much money guys hedging the last 8 years left on the table, but I'm sure it would be enough to build 2 years worth of storage. I'm sure brokers and advisors love the current system.
YOU STATED that the the guys hedging have left a lot of money on the table and that simply is not true. PERIOD |