Presold production issues

[Choice2U]

Presold some flax and peas with Act of God to cover hail, early frost, etc. but not too much rain. If presold 10 bu/ac and only produce 10 - 15 bu/ac averaged over full area, the Act of God is of no use and all one has done is lock in a shitty price (assuming these markets explode because of rain everywhere) on the little that one grew. Any options.

Presold small amount of canola but it may end up being a large amount of actual production but I have the ability to buy a call option to take advantage of any price increase.

No wheat presold but that is probably the one thing that will not go up because of the "glut" around the world.

Suggestions please.

[SASKFARMER3]

On peas you are correct if you presold at their shitty winter spring price you will be selling All your production for SFA! It's a win win for the grain companies locking in cheap cheap prices! Ah farming!

[farmaholic]

I had some greens priced at $8.00, wasn't real happy with it to start with, now even less. I gave them the heads up that I'm having problems. There is an act of god but am sure they'll want me to supply, especially given the production problems and potential increase in prices and a basically empty pipeline (or at least little carry over). I have a quarter(approx 2 B loads from it)committed to them but have about 560 acres seeded. What would you do?

[SASKFARMER3]

Wait peas production will be small!

[Rareearth]

Force manure, grain companies claim all the time

[cottonpicken]

Plus there is the trap aspect,you got zero production and prices go through the roof.....act of god contracts different,I don't understand why grain companies don't offer act of god on everything and do the hedging for us,at a price of course.

Could you imagine having to pay out a contract on a year of zero production.

[wannabefarmer]

Never been able to get my head around selling something I don't have and for the most part has worked out pretty well over the years with the exception of this years wheat which went out of here on a fire sale. Only upside to that sale is we had to bins getting hot but only lost a couple hundred bushels in the end. If we would have sat on it for another month would not have been good. Don't ever remember a zero production year around here came close in 82 with a hail storm that was adjusted from the truck window . Managed to salvage enough for seed that was about it.

[Tucker]

Hmmmm lets see... what factory produces widgets that aren't already pre-sold/pre-priced? I sell my canola to Bunge at Harrowby and they already have the oil and meal sold at a comfy profit margin. Do we need to front all the input dollars and then see our crops either prosper or fail and THEN take a price which may be a loss on that production? It would be awesome to only sell or hold what I have in the bin but this is the real world of farming. It sucks and the contracts are one-sided. I'd love to run my farm like the canola/wheat/pea/barley factory it is but this is the way it is. We change it or we stop whining about it. I have been burnt on pre-harvest hell even pre-seeding contracts I've signed. I won't do those contracts any more and I wish that all farmers were in the enviable financial position to turn their nose up at those contracts too.

So. Stop whining about it. What do we do about off-loading some of the production risk we are currently forced to take?

[Tucker]

wait a sec. How is excess moisture not an act of God? Who the heck else gave me the 6 inches of rain in the last two days that ****ed my crop?

[wannabefarmer]

Well not sure if your factory idea is a amid at me but if I had orders for a million tones of peas and could make it myself in a factory that would be wonderful and yes I could price things ahead and chose not to. Have done so for 35 yrs. I sell for the most part when I want for the price I want. debt is covered as well as next yrs growing season. Not bragging nor complaining. Just the way I do things in the dream world of farming.

[Hopperbin]

I may like to take on your 8 dollar peas price. Whilst the current price is in the gutter.

[hedgehog]

Canola should be diving now that your "mega" crop is stuffed.