Wheat futures climbing nicely

[iceman]

When was $11.50 being offered? Like back in March?

Thats not very good planning to book production before you are even in the field.

I never knew so many guys were so aggressive on forward contracting.

How are these private insurance companies going to handle these buyout? They actively encouraged producers to reduce their risk by forward contracting at the same time as telling the producers they were covered.

Also the premiums never would change no matter if you forward contracted 75% or 0%

Houston errr Regina we have a problem

Iceman

[iceman]

Excuse my ignorance, could you explain “ private insurance companies ”

Gars & just solutions they insure certain variable costs plus a fixed amount on top of the that. Ie variable plus $125 per acre.

[helmsdale]

Got it, so you’re saying a farmers forward contract turns into a bigger loss which they in turn have to cover?
My guess would be any forward contracts a farmer has done will be his own problem. I’m not that familiar with those programs.

They only cover it up to your indemnity, and I believe at that only up to the fixed cost margin coverage you select. It's not unlimited...

Let's say you have a wipeout, and a bunch prebooked. Well depending on how much you gambled they might cover the first $100 or $125/ac(whatever you select for fixed cost margin coverage), plus your inputs(if you elected to have your inputs covered), but every other single bill you have is still going to be coming due and you decided to piss away your fcmc on a gamble.