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NC Kansas | OldMac, I'm banker, and I too was saddened by that post a while back.. I can't remember if I replied or not, but was more less left speechless. Yes we are conservative minded, but we are coached to never ever tell a farmer/rancher how to do their business. That can be a liability issue, and personally I would hate to be the one telling a farmer to sell at the wrong time. I do encourage that my customers look into price protection and am a fan of put and call options for any operation to help lock in profitable prices without taking away poetential upside in the market.
Our institution as a whole understands that with price protection (hedges) you have margin calls, and they have to be dealt with. I hear of banks all the time that don't want to get messed up with margin calls, and my response is, well what do you want? A producer that is trying to price protect his product and remain profitable? Or do you want to be so conservative you bite your nose off to spite your face. | |
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Bankers and cattle prices
