Mark Gold, president of Top Third Ag Marketing, based near Chicago, is encouraging farmers to use put options now to protect income, whether from insurance payments or, for the fortunate few, crop yields expected this fall.
Gold also made the following recommendations that he says are his rules for survival in a drought market:
1) Don’t speculate
2) Don’t put on marginable trades
3) Don’t sell calls to pay for puts
4) Don’t assume these markets can’t go right back down
In the following video, Gold provides more direction on how farmers can use put options to maximize their income opportunities now.
Thank you to the 2012 Corn College sponsors:
Agrotain, BASF, Great Plains Mfg., MANA, Novozymes, SFP, Precision Planting, Pioneer