Off the topic of whether to sell or not but an interesting question
always on act of god and their inclusion. Most of the time, the
way pulse price risk is managed is to match exports sales against
farmer pricing. In this process someone has to take grade risk
(reality in western Canada). If there is an act of god clause, the
grain company/processor has accepted this risk.
An observation on wheat is the insurable grade is human 2CWRS
11.5 or 2CWRS 13 (Alberta anyway) with adjustments made to
coverage levels if a farmer has crop downgraded to 3CWRS or
Canada Feed. could peas be handled the same way (insure as a
human food versus feed - know both AB and SK are a
combination but don't think there is a grade loss adjustment).
Another idea is to provide some form of grade loss insurance -
look for a third party to carry the risk (for a premium) versus the
buyer and seller.
always on act of god and their inclusion. Most of the time, the
way pulse price risk is managed is to match exports sales against
farmer pricing. In this process someone has to take grade risk
(reality in western Canada). If there is an act of god clause, the
grain company/processor has accepted this risk.
An observation on wheat is the insurable grade is human 2CWRS
11.5 or 2CWRS 13 (Alberta anyway) with adjustments made to
coverage levels if a farmer has crop downgraded to 3CWRS or
Canada Feed. could peas be handled the same way (insure as a
human food versus feed - know both AB and SK are a
combination but don't think there is a grade loss adjustment).
Another idea is to provide some form of grade loss insurance -
look for a third party to carry the risk (for a premium) versus the
buyer and seller.
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