flexpro

[dfarms11]

How has the flexpro performed in the past? Has it done better than following FPC? How has it compared to the PRO over the last year? Now I'm not just asking how anyone person made out personnally using it but an overall performance throughout the year. Looking for any and all comments. Thanks.

[charliep]

The answer to your question is in the historical charts.

http://www.cwb.ca/public/en/farmers/producer/historical/

You actually have to look at both the fpc and flexpro charts. The
flexpro charts do not include a comparison with the PRO but you
can use the fpc charts as a guide. The flexpro and the fpc have
only varied by the post August adjustment factor for existing
sales (you need to understand the adjustment factor).

If you do the comparison on between the fpc (by extension the
flexpro) and the PRO, you will see the producer pricing options
have been well under the PRO forecasts. If you take me down
this road, I would become a frothing maniac but that is not your
question. When you sign up on these programs, you can't look
at the price as such but rather your ability to manage risk by
capturing a favorable price/payment and improving cashflow. A
reason the flexpro can be a benefit is you can price the last
portion of crop deliveries without having to go through the
process of rolling fpc contracts. Put another way, I would use
fpc for fall cash pricing and flexpro for pricing in the last
quarter of the crop year.