Production uncertainty due to drought means farmers are reluctant to market the new crop. NAU Country Vice President of Farm Services Rich Morrison says an options strategy will help farmers take advantage of high prices without committing bushels to an elevator. “You’re basically buying an insurance policy on a break. When new crop corn is above $6 on the board, you don’t want that to get away from you, so you can buy a put and lock in a minimum price. but if you don’t raise a crop, then you just have to keep the paper.” For farmers who have never used options, Morrison says start small. “The best education I’ve ever been around is just trying it on one contract. Find a broker in your area you’re comfortable learning with and participate.”
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