Stable price - commodity price insurance TFF member 8% discount

Clive

Staff Member
Arable Farmer
Location
Lichfield
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Created by farmers son Richard Counsel Stable price aims to offer farmers simple insurance to protect them against price volatility. TFF have negotiated a 8% discount for out members that want to use it

Richard is an experienced entrepreneur, having previously run technology firms in Chicago, Melbourne and London. He lives on a family farm in Somerset and is also a Nuffield Scholar



As well as grain markets including OSR, Milling Wheat, Feed Barley and Feed Wheat Stable will offer price insurance to livestock sector including Milk, Pork, Lamb and Beef

You can even insure against rises in fuel and fertiliser prices


It's a very simple process - you register, and go through a process to get a insurance quote that guarantees a minimum price for the month you want to sell, its that simple really, no complicated knowledge of futures or options markets are required and no active management of your position needed, its juts simple insurance premium that you pay to guarantee that the price



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Ahead of the official launch of this new service on March the 6th TFF has secured a 8% discount for our members, you need to register ASAP to get this even if you don't have immediate plans to use it as the offer maybe time limited

Click this button to give it a try, we think its a innovative product that could help us all put some certainty into our financial planning

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Click via the button above to get your 8% TFF member discount​
 
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Clive

Staff Member
Arable Farmer
Location
Lichfield
Will you do some Clive?

maybe, I'm open minded on these things and very interested to see how this pans out, its certainly a very easy clean way to put a base in things without the complexity of options which need managing - I'm going to the launch on the 6th of March

its another tool in the box and getting a decent TFF member discount makes it a bit more affordable
 
Location
cumbria
Very interesting, got a quote for milk price protection no bother.

Quite clever how it works as well.
You can set your own payout level. Thus creating enough variance to offer cover.
 

Chris F

Staff Member
Media
Location
Hammerwich
Very interesting, got a quote for milk price protection no bother.

Quite clever how it works as well.
You can set your own payout level. Thus creating enough variance to offer cover.

@ollie989898 was asking about that earlier. Not a subject I know about, however in the dashboard it shows massive availability to insure against (4 times that of wheat). What price did you choose as your level of insurance?
 
Location
cumbria
@ollie989898 was asking about that earlier. Not a subject I know about, however in the dashboard it shows massive availability to insure against (4 times that of wheat). What price did you choose as your level of insurance?

Cover cost varies depending on when I want it to kick in.
It uses the ahdb tracker as the price indicator rather than an individual contract.

I could have it kick in if the tracker falls below 27p. (The most expensive insurance option).
Or have it kick in to guarantee 15p.(The cheapest).
Or any price in-between.
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
Is this another organisation that will sell you an umbrella that doesnt work when it is raining?

I really dont think so - they are selling insurance and are FSA regulated so very above board and respectable

It’s simply a new tool in the farm financial toolbox

Grain farmers have been able to use options for years but many were frightened of the perceived complexity of it all to put a bottom in their sales but this insurance option makes it all a lot simpler and brings the idea to markets like milk, meat and input buying N and fuel that have never had this option before

If the NFU offered farmers a price protection policy I bet most would take it ?
 

Clive

Staff Member
Arable Farmer
Location
Lichfield
So what would the cost of insuring 1 million litres of milk against a 5p price drop be for 12 months be roughly??

login and get a quote ! There is no commitment and it’s worth registering while this 8% TFF discount is available even if you don’t want to buy insurance at the moment
 
What's your guess?
0.8 p/l ?
Richard spoke to our discussion group last week, nearly didn't go as I thought it would be boring!
Was quite fascinating!
Based on up corn/down horn principle and masses of calculations and the fact that not everyone will insure the same drop, so if the milk price drops so people will be paid but some won't has they will have not taken cover for a big enough fall.
Not sure I have explained that very well but backed by billions so should be safe!
 

Chris F

Staff Member
Media
Location
Hammerwich
0.8 p/l ?
Richard spoke to our discussion group last week, nearly didn't go as I thought it would be boring!
Was quite fascinating!
Based on up corn/down horn principle and masses of calculations and the fact that not everyone will insure the same drop, so if the milk price drops so people will be paid but some won't has they will have not taken cover for a big enough fall.
Not sure I have explained that very well but backed by billions so should be safe!

Was half that, almost exactly for 12 months
 
It’s only worth it if you think we are going to see very wild price drops. The normal ups and downs and it’s a waste of money.

Today’s price £170 for wheat
Insurance start price £154
Insurance stop price £85

So the first £16 loss you can’t claim on which is normal annual movements. Also in a total collapse you can’t claim as it would be circa £60.

And the insurance itself costs about £5 which is the same as options isn’t it?
 

Hampton

Member
BASIS
Location
Shropshire
It’s only worth it if you think we are going to see very wild price drops. The normal ups and downs and it’s a waste of money.

Today’s price £170 for wheat
Insurance start price £154
Insurance stop price £85

So the first £16 loss you can’t claim on which is normal annual movements. Also in a total collapse you can’t claim as it would be circa £60.

And the insurance itself costs about £5 which is the same as options isn’t it?
Not true. You are insuring it will still be £154 in November, 8-9 months away. You can’t sell at £170 and deliver in November based on current market, but November futures are around about £155?
 

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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