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Arable Farming
Cropping
Crop Insurance Launched
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<blockquote data-quote="CRM AgriCommodities" data-source="post: 5957948" data-attributes="member: 29580"><p>An option is simply insurance, your maximum loss/ outlay is your premium paid upfront, then you either claim on the insurance if the market falls (put option) or the insurance expires worthless and you have no further obligation. as [USER=6]@Clive[/USER] says they have been used for decades by farmers around the world. As an example, a 'put option' to insure new crop wheat from further price falls between now and November -19 currently costs £9.50/T roughly £1/t per month, if it gets to November and prices are at £200/T then all you lose is the £9.5/T and you are free to sell your grain at £200 or hold it for a later sale. Farmers can open a demo account with someone like Saxo bank (<a href="https://www.home.saxo/en-gb" target="_blank">https://www.home.saxo/en-gb</a>) and see how simple purchasing this insurance is.</p></blockquote><p></p>
[QUOTE="CRM AgriCommodities, post: 5957948, member: 29580"] An option is simply insurance, your maximum loss/ outlay is your premium paid upfront, then you either claim on the insurance if the market falls (put option) or the insurance expires worthless and you have no further obligation. as [USER=6]@Clive[/USER] says they have been used for decades by farmers around the world. As an example, a 'put option' to insure new crop wheat from further price falls between now and November -19 currently costs £9.50/T roughly £1/t per month, if it gets to November and prices are at £200/T then all you lose is the £9.5/T and you are free to sell your grain at £200 or hold it for a later sale. Farmers can open a demo account with someone like Saxo bank ([URL]https://www.home.saxo/en-gb[/URL]) and see how simple purchasing this insurance is. [/QUOTE]
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Arable Farming
Cropping
Crop Insurance Launched
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