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Red River Valley | First question gndfarms- to you have crop Insurance if you do than you are safe up to 1/2 a crop. first ask them if they buy Hedge to arrive ( HTA), Cash or both I perfer to sell HTA because of the flexability it gives me you don't set basis and you can roll to future months a collect the carry. but either is OK sell in small lot's maybe 5% of production each time or even smaller I would not worry about puts or calls or futures at this time but do ask question of them when selling they will explain how they work and maybe do some on options on "virtual trades" Know your breakevens under "normal" growing cond. don't kick your self if the market goes up reward with another small sale. at this point Corn and wheat are in heavy "carry markets" meaning that somebody is willing to pay you more for your grain later then now so sell them some for later.
Understand that if you tell the marketer that you want to start learning about forward selling they will be happy to try and teach you some will think they are trying to screw you over, but really that is not in their best interest they will try and make you a better marketer because if they can show you how to gain extra income you will sell them more grain in the future and they make there money on volume not one time sale.
not to familar with ADM products but Cargill has some differant programs like pre. offers, pacer ultra, e-hedger, and other programs talk to them they will help if you find one that perks your interest try one on a limited no. of bushels and see how it works.
differant marketing plans work at differant times of the year. GOOD LUCK
Edited by Tara Farms 7/8/2010 19:55
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please educate me on some marketing
