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Statistics, % of farmers with trade/hedge accounts
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purplepride0
Posted 3/25/2017 07:43 (#5921217 - in reply to #5920854)
Subject: RE: Statistics, % of farmers with trade/hedge accounts



West Central MN (between MMF and Larson's)		Fry,

My guess would be approx. 25%

We have accounts with 3 firms, 2 are active. Each has their strengths.
We used to do strictly HTA's on our forward sales, but now do all our own hedging. By doing our own we can do a bunch of small sales to spread risk like we prefer to do and still swing a bigger sum of bu in basis negotiations. That alone has garnered about .10-.15/bu the past few years and insures our bu are not "captive " with the elevator knowing they have the bu. They still have to work to get the bu. We still need to make sure we make good decisions and stay hedgers/minimizing spec. to keep the heartburn to a minimum. What really helps a hedge account is having a lender that understands that if your hedging that margin money is good as it means the rest of your crop is worth more.

I also think Oldidea's observations are fairly astute.
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