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| Some of the recent threads on Market Talk and Crop Talk have mentioned that some feel they have "taken care of marketing" by buying high levels of revenue coverage.
On thing to remember (in my opinion) is that crop insurance, regardless of type, only covers "dead" bushels. No matter how big and bad a policy I buy, it will only pay me for bushels I don't produce.
Yes, high levels of revenue coverage will pay me a "revenue loss" if the price goes low enough (or my yields suffer), but the bottom line, I still must market the bushels I produce at some time. If the price has gone low enough to "throw" me into a revenue loss, that also means the cash price has "sunk", and if I didn't protect price, all of the bushels I produce earn much lower price.
I'll attach two examples, one showing marketing your guaranteed bushels, and one with no marketing. Fall prices shown will range from $4.00 to the maximum price revenue coverage will pay. Notice how the two lower price scenarios compare with, and without marketing.
Let me know what you think (but play nice).
Rob
Attachments
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 Revenue Coverage with Marketing.pdf (12KB - 455 downloads)
Revenue Coverage without marketing.pdf (12KB - 356 downloads)
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Revenue Coverage and Marketing
