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South central kansas | As a result of non convergence, the link that is supposed to mesh cash and futures is broken with consequences on farmers ability to lay off risk by hedging and not to mention the risk enhancing effect on crop insurance, which is the exact opposite of its intended purpose.
Convergence issues are not a new problem, as farmdoc points out in the following article from 2013, it has been a problem at certain times and the culprits are the same as what Art Barnaby points out.
http://farmdocdaily.illinois.edu/2013/08/solving-markets-non-conver...
Edited by zenfarm 2/14/2017 21:09
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Hey Kansas Wheat Farmers! Have any of you...
