New crop canola price protection

[TOM4CWB]

Similarly, if prices break and they are sold for a profit the net profit is taxable income.

Gains on stocks capital gain, hedge and option income like grain income.

Got a call from AFSC hopefully in a week 2022 crop insurance grain values will be released.
No premium discount like last year but a delay of one year in premium increases from 2021 losses… means cost like last year for similar coverage.

Cheers

[Oliver88]

It’s much easier to get out of a contract using paper than it will be trying to get out of a contract with a grain company. You still might have a loss but you can get out of it sooner if you feel you can’t produce the tonnes you have contracted. I don’t sign contracts with grain buyers until I have it in the bin, but will do options or hold a position with a commodity broker before I harvest the crop.

After 2021 options will be more popular.