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| The mechanics of CRC and RA-HO work the same. The major difference is the $1.50 limit on corn and $3.00 price limit on soybeans with CRC, vs. no price move limit with RA. If CRC and RA-HO were close in premium, I would really consider choosing RA over CRC. However, for there to be an issue, corn must go under $3.90 during the CRC averaging month (Oct), and RA end under $3.90 also (Nov).
To the upside, you must have a yield loss, and the price average over $3.90 for RA before there is a difference. Usually this is not a concern, but if you look at wheat now, RA certainly is the better bet over CRC if a producer is looking at low yields (southwest KS?).
The program I show pdf's of is my own, built and expanded on over the last five years. I am thinking of building a "members" page on our website, so customers/clients could enter and run their own numbers and price scenarios.
Good luck this season, Rob | |
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Rob and others -One last ?
