Buying Calves

[wilagro]

My opinion: CPIP has got to be one of the dumbest programs going. It assures that the 'packer' IS in control and can offer lower bids on all cattle without too much squawking from the producer. After all..."the producer now has insurance" against drastic loss.

It is all BULL droppings.

There is a cost for this "protection" and IMHO it comes out of the profit pie.

[Cattleman]

Yeah, I think selling options can work in my risk management. Options are pricy to get into a valuable spot... I look at options sometimes with corn, but more on spec it seems Nice not to have margin calls.
CPIP makes sense. Fed cattle is hit and miss, and works sometimes. The others are a little less appealing, mainly since we have had such a tightening of the basis, the program does not give as much protection as it should in my opinion.

[cottonpicken]

80% of options expire worthless.

If your looking to hedge and risk manage and play it
safe my feeling is you put that money into
something like a solid dividend paying oil company.

Fuel is a cost we all have and over the course of
time at some point your dividends will be a good
chunk of your fuel bill,and you always end up with
something of value.

If your like me and love the risk game,there are
different scenarios of what you could do with that
money but i'm not going to get into that.

NIA DYODD

[BTOfarmallll]

Dr. Joe Dales, DR. JOE DALES!!!!!! How did cotton bring up posts from 2008???? Where's The Search Button????? TIA