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| rob,
ok did I miss somthing on the pdf because it looks like yields and returns up through 2005 not 2006.
Also I will challenge you on the locking in the revenue product and selling your production. If I did that last year how much $$ was left on the table with GRIP/CRC or anything? Futures are over $4.00 right now. If I sold last year at $2.59 (a good price at the time) bought GRIP or CRC, I spent $$ on the insurance and price rallied. If I did that and said "the insurance is cheaper than options" boy was that wrong. There is another thread on this site with a guy asking about what he should do with the $3.00 corn he has sold for 2007. Great Idea at the time because it was last summer. $3.00 corn was a good deal. I bet that most of the guys that sold corn at $3.00 felt a $2.70 put back then was too expensive. Looks cheap now. Yep they are almost worthless but I can still sell corn at current levels and I dont have to stew about my poor sale. Who's to say that in 3 months there are not posts about $4.00 corn sales and the market is at $5.00 Now what? What does crop insurance do for me then if I sold at $4.00? Can I raise the floor higher? Nope. If I have more bushels to sell that is ok since I can sell more. BUT what if we are $1.00 lower in 3 months. Then what? Point being options look pretty cheap to me and I can manage them higher or lower. CRC or GRIP I can not. If I use one, I need the other. I have 2 months to get a price on Insurance. I can use options all year. Also can a CI expert answer my previous basis question. I think it was 007 who said if the basis got better at harvest CRC worked better. Still trying to figure out why. I am confused.
Again I am not an agent so I dont get paid commisions. My views on crop insurance are unbiased.
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crop insurance
