| Sheep Farmer - 3/3/2024 07:15
Oh the good ole accumulator talk. In 2020 some people on this site ramped and raved about them. 2021 and 2022 people were on this site knocking the heck out of them. Amazes me how many people just flat out don’t understand them and/or than bash them. We use accumulators as a part of our marketing plan on every crop. We understand risk, reward, etc. Had a neighbor come by 3 weeks ago that started asking about them for his boy who’s farming their ground now and margins look tight so he was trying to help him with ideas. I just chuckled and told him right now is NOT the time to be using accumulators, as I told him I’m using them and will continue to. Alluded to tell him they work so much better the farther out you go but right now HTA’s, cash sales, etc were way better options. People sluff them off when I say that because most are not thinking big picture as far as marketing 1,2,3 years out. Every marketing plan is either right or wrong as time of delivery, per say. Know your costs, make your plan, understand your infrastructure (bin storage vs what I can’t store), and execute your plan. Marketing grain does not have to be hard but just baffles me how people many make it more complicated than it is.
Thanks for all your input and posts. Enjoy reading your commentary.
I think you hit the nail on the head……is that people dont understand them
Accumulators work good at times………and I have no issue using them, but one should realize that the time that producers want to use them is when we have prices that are depressed
The biggest thing is that if you use an accumulator dont allow it to make one complacent in marketing……so make sure you really understand them
The biggest thing is do they have a knock out? How is it priced? Daily double up or just at the end
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Elevator contracts WRONG time to use
