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| It’s a negotiation. He wants you to pay more than you think you can justify.
Last year a 600 acre farm was up for rent that I was interested in. The farm manager sent me a form and a few days later I sent my offer. That same day he emailed back that he already had higher offers and wanted to know if I wanted to raise my bid. I politely responded and basically told him I was comfortable with the offer I made. About a month later he contacts me again asking if I’m still willing to rent it for the amount I offered. I don’t know if he had a better offer that fell through or if he was bluffing but ended up with a three year lease.
With reference to PLC, you can quantify its value by figuring out how many bushels are protected and the value of the put. If it has little value to you the put can be sold on CME. You could sell the put and use that money to buy 95% revenue coverage. If you can’t break even where the 95% starts paying out, it sounds like a pretty big gamble imo. | |
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Help me understand ARC/PLC, (corn/soybeans) looking at floors/safety nets
