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Aurelia, Iowa | I'm afraid that your disgust for the ethanol industry is misguided and I say that as a dairy farmer. There was plenty of time to lock in the price of corn over the past few months at a very reasonable price. I for the past several years have purchased call options to lock in the price of corn for our dairy operation. Most years I wind up losing the 25 to 30 cents a bushel that it costs me to guarantee me some peace of mind. I consider that insurance. This year those 5.50 December calls that I purchased for 35 cents are going to guarantee me a corn price of $5.85 for the year. There are so many ways to lock in your feed costs-it just takes a little time and research to do your marketing and purchasing. Back a month ago when this price spike started there were a few posters on here that didn't want to lock in their corn price, and many other posters were practically pleading with them to get something done. In the end it all comes down to the decisions that we personally make that make or break us. I for one will keep using options as a hedging tool even if 75% of the time I wind up losing that 35 cents. I guess if you need ethanol to blame as a scapegoat go right ahead and keep putting out more false information. | |
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Ethanol is the problem
