Stable price - commodity price insurance TFF member 8% discount

[shakerator]

this all happened before the C19 crisis

if I had to guess I would say uptake has been much lower than they hoped so they are just looking at a different sales strategy / customer maybe?

another opportunity missed for farmers to take control of their own destiny

but
Are we taking more control of our destiny by avoiding what are the obvious problems inherent in derivatives clearing ??

 

[David.]

another opportunity missed for farmers to take control of their own destiny

Is that quite fair, is everyone expected to jump in on year one of an unproven product?
Not saying for a moment this is one of them, but there are plenty of Ponzi type snake oil wheezes out there to scam the unwary.
Looks to me like pulling stumps because of unprecedented and potentially ruinous volatility, that is too expensive to lay off in the market.
Which is fair enough too; but dont blame the farmers.

 

[SilliamWhale]

this all happened before the C19 crisis

if I had to guess I would say uptake has been much lower than they hoped so they are just looking at a different sales strategy / customer maybe?

another opportunity missed for farmers to take control of their own destiny

Well you say that but is it really taking advantage of our own destiny? It was just an insurance scheme, it has pros and cons depending on how each season goes. At the end of the day it is still just gambling with other peoples money, thats all it is. Some years it could be excellent, some years a waste

 

[Pieces_of_Eight]

The admin of setting up a temporary insurance policy for 200 tonnes here and 500 tonnes there must have been horrendous. Much easier to deal with mills & merchants with 10,000 tonne bulks.

 

[Goweresque]

I think there may have been a fundamental flaw in the concept to be honest. The insurance was only ever going to be bought when prices were at levels farmers know from experience are 'good' prices, and don't tend to last for that long. Whereas when prices are low no-one will want to pay extra money in premiums to lock themselves into a low price. So it looked to me like a scheme whereby most policies would be taken out in conditions that more often than not will end up paying out, which one suspects is not a viable business proposition for the insurer.

 

[goodevans]

For every action there is an equal and opposite reaction

 

[essex man]

If there wasn't enough money in it then perhaps not a very good idea?

 

[crazy_bull]

The admin of setting up a temporary insurance policy for 200 tonnes here and 500 tonnes there must have been horrendous. Much easier to deal with mills & merchants with 10,000 tonne bulks.

Their model if I remember correctly was only to deal with producers not merchants, perhaps it just didn't stack up if they couldn't get a completely balanced book (livestock, grains, fibres etc etc) as their model was based on 'up corn, down horn' etc

 

[SilliamWhale]

Their model if I remember correctly was only to deal with producers not merchants, perhaps it just didn't stack up if they couldn't get a completely balanced book (livestock, grains, fibres etc etc) as their model was based on 'up corn, down horn' etc

I always thought it odd to base a premise like this on up corn down horn but your right that is how it was promoted. Corn hasn't really been up for years

 

[CRM AgriCommodities]

Farmers looking to insure prices on bulk commodities such as wheat and OSR without committing yield are still able to do so using 'put options'. These tools have been available on regulated exchanges and have been used by farmers globally for over 100 years and @CRM AgriCommodities have used them as part of our risk management strategies since 2014. This season has allowed us to lock into price in March without committing any yield and still being exposed to higher prices. Please in touch if you have any questions - www.graintab.com