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Red River Valley | from a purely economic look having not cancelled those sales until you knew you did not have the bushels would have netted you more. beans are at least $1.00 - $1.50 below the level you cancelled the sales at so it would have been very easy to have either bought beans to fill the contract or sold the contracts back to the business you were contracted with for a very nice profit.
Now if your saying emotionally you feel that you could not sleep with the sales on your deck sheet then yes I would say for you it was the right thing to do.
The only thing I would ask is why did you do those sales in the first place if at the first hint of a problem you were going to need to be out of them ????
Harvest Price Option on Insurance gives you the higher of the two prices so beans going up will net you the same as the sale would have netted you.
If you sell 5000 bu. of beans for $10.00 a bushel and the HPO has beans At $12.00 and you don't raise any of the beans then you will need to pay $10,000.00 to buy those beans back but you will receive $60,000 from the Insurance company for the revenue coverage on those beans which means you still netted your $50,000 of the expected acres that you sold for $10.00.
unless your were selling beans over and above your insured bushels.
Edited by Tara Farms 11/8/2015 18:06
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