Charliep,what are your thoughts?

[Ooofty]

Charlie, What do you think about the SPE and RIC options for spring wheat and durum and yellow peas?

[charliep]

SPE unlikely to pay out for hard red spring, durum and peas. All offer payout potential under the revenue insurance portion keeping in mind you have to pay the SPE premium.

Hard red spring - rally puts the fpc (adjusted to grade and protein) close to the revenue insurance price. My strategy would be to forward price some using fpc over the next two weeks. If you are not prepared to do this, I would use the SPE as a back stop. Lee talked to one farmer who is using spe/ri to cover price risk up to his insurance coverage level (I think 70 % but not sure) and is forward pricing the remainder of his expected crop (at least to crop insurance yield) under a CWB fpc.

Durum - give the premium offered above spring wheat on the floor price and the fact durum/spring have the same PRO, I would for sure use SPE/RI on durum. Good risk coverage.

Peas - note that peas coverage prices are now a combination of feed and edible yellow. Would likely use SPE/RI to lock in a floor revenue.