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| I have brought this up before and will again here now........probably take some heat for it but thats OK I am a big boy.
So we get a run up in futures, its ALL over the headlines. Everyone thinks farmers will be ROLLING in the green stuff....pretty soon inputs will be following the grain futures up...........One little fly in the ointment, CASH grain is not following the futures ANYWHERE near the same pace.
So here we are, need to HEDGE your production, need to HEDGE your inputs...etc....etc.....seems to me ALL the risk is coming back to the producer from BOTH the input AND output side..................SO, if given a chance for say a CRP bid, or a CASH RENT to somebody else....I have to ask myself as a person wanting to make a profit and make wealth, why should I not quit raising the cash grain myself IF given one of the above opportunities?
Am totally able and comfortable with buying ahead, and hedging futures.....my problem though is trying to go head to head with the basis/cash part of the deal.........in that case why not let somebody else raise it?? | |
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Why raise cash crops??
