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Feeder cattle insurance
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Markwright
Posted 10/22/2010 13:20 (#1403414 - in reply to #1401443)
Subject: RE: If your banking with Farm Credit Services


New Mexico
( old PCA/Federal land Bank ) alot of those, offer LPR in house so to speak.

Used to be you had a 2 day window ( after the fact ) to choose your floor price, which was nice.

Generally speaking, the govt subsidizes the cost of the put.

Say buying a regular put for your position costs $1 cwt, by going thru LPR cheapens the cost of that to approx 50 to 60 cents.







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