Crop Insurance Launched

Discussion in 'Cropping' started by AndyBridgeFarm, Feb 8, 2019.

  1. AndyBridgeFarm

    AndyBridgeFarm New Member

    Location:
    Somerset
    I suppose that highlights my point. Options/Futures confuse me. Insurance does't. I'm a farmer, not a trader.
     
  2. Steevo

    Steevo Member

    Location:
    Gloucestershire
    It’s not the transaction time I was referring to. The real investment is the time taken to gain the experience on the right time to buy and sell.

    That’s the benefit of the simplified insurance model. It removes this element.
     
    Jerry and AndyBridgeFarm like this.
  3. David.

    David. Member

    Location:
    J11 M40
    Begins to sound like spread betting then, has to move a lo-o-o-ng way before you get a payout:unsure:
     
  4. Presumably the main beneficiaries of these complex ‘marketing’ schemes being promoted by our trade body (hgca as was) are brokers, agents, multi national traders, bankers and various middlemen - NOT farmers
     
  5. AndyBridgeFarm

    AndyBridgeFarm New Member

    Location:
    Somerset
    I thought that, but actually you can set how far you want it to move and for how long and no other risk outside the premium, so not like spread betting. Actually it's more boring! Like insurance!
     
  6. Clive

    Clive Staff Member

    Location:
    Lichfield
    An option is insurance - all that’s different is the name

    But stable does make it REALLY easy
     
    willy likes this.
  7. Clive

    Clive Staff Member

    Location:
    Lichfield
    You don’t even have to be a farmer to have a futures account - just deposit some money !
     
    Chae1 and Brisel like this.
  8. AndyBridgeFarm

    AndyBridgeFarm New Member

    Location:
    Somerset
    It's simplicity is the appeal. As soon as Options are explained to me, put calls, etc I get thrown. And then you have to employ a city boy to do it for you! Or you can do it yourself and then at the bottom of the Options trading page it says something like "Options trading can be speculative and carry substantial risk of loss".

    Not for me - insurance seems the way to go.
     
  9. fieldfarmer

    fieldfarmer Member

    I don't think they are in it for fun, I'm sure they have worked it out and 'probability' will come in to play also but for me ,I can only see one real winner financially. It does sound like spread betting to me.
     
  10. Clive

    Clive Staff Member

    Location:
    Lichfield
    With options you risk loosing the cost of the option

    With insurance you risk wasting the cost of the premium

    So both can cost you in a season where you don’t need them, it really is the same thing and same risk level, only difference here is simplicity or explanation,

    It’s inportant anyone using any of these tools fully understands them so what stable have done is a good thing that will bring access to such risk management mechanisms to many more
     
    Brisel and AndyBridgeFarm like this.
  11. fieldfarmer

    fieldfarmer Member

    @Clive Can this all advertisement for Stable be put in its own page please, will be easier to follow in the future and get this thread back on track. thanks.
     
    Longneck, Chae1 and average farmer like this.
  12. AndyBridgeFarm

    AndyBridgeFarm New Member

    Location:
    Somerset
    Although spread betting is incredibly risky and uses leveraging so losses can be magnified; it's therefore legally classed as 'gambling' and something I'm not prepared to do with the farm's money. 'Insurance' is legally classed as insurance and comes under protection from the FCA and like insuring the car, I can only lose the premium,
     
  13. fieldfarmer

    fieldfarmer Member

    @AndyBridgeFarm , are you connected to Stable in anyway ? They should be putting you on commission.
     
  14. Clive

    Clive Staff Member

    Location:
    Lichfield
    I’m not in the office today but will pull all the threads into a separate thread when I get a min - you are correct it’s going very off topic
     
  15. fieldfarmer

    fieldfarmer Member

    Thank you, its something that we will follow with interest but would struggle to find here.
     
    Clive likes this.
  16. Clive

    Clive Staff Member

    Location:
    Lichfield
    For a farmer who doesn’t understand options and finds them complex it’s fair to say he seems have a reasonable knowledge of spread betting and other trading tools from posts so far
     
  17. Hampton

    Hampton Member

    Location:
    Shropshire
    You are right, insurance does seem a lot safer.
    Insurance was particularly safe in the late 80’s and early 90’s when suddenly many farmers in Lloyd’s of London suddenly discovered that many of their syndicates were writing naked options on asbestos policies in the USA. Also many farmers with Lloyd’s of London were involved with the fraudulent Gooda walker insurance syndicate.
    Many farmers and landowners lost huge sums of money and/or their farms based on getting involved in insurance, and much of that was discovered to be unlawful if not unregulated, so don’t think you are choosing something that’s safe over something that isn’t.
    I think it is likely to be an excellent tool and I will almost certainly use it, but eyes need to be firmly open.
     
    crazy_bull likes this.
  18. AndyBridgeFarm

    AndyBridgeFarm New Member

    Location:
    Somerset
    Not sure my 4 attempts at maths O level would cut it!
     
  19. wellingtonfarmer

    Location:
    Herefordshire
    What’s the website you are all going on about- wouldn’t mind a look
     
  20. Hampton

    Hampton Member

    Location:
    Shropshire
    Google Stable price
     
    wellingtonfarmer likes this.

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