Cory Walters

The market rally following the June 30 USDA Acreage report has come and gone. So, now what? This article will discuss the price probabilities for the last half of 2020 and how to prepare for farm survival.

With the uncertainty revolving around COVID-19, grain marketing has come to the forefront of many producers’ minds. I have heard more than once, “at current price levels should I hedge my crop?”

However, it is important to remember that if you have purchased Revenue Protection Crop Insurance, your 2020 crop in field has been partially hedged. Let’s take a look at how crop insurance acts as a hedge when commodity prices decline during the growing season.

Some of you may be wondering, in this rising wheat market, “why not place a long hedge or purchase a call option?”, while also holding unpriced grain either in the field or in the grain bin.