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SE MN | You are correct in that it doesn’t help me in any bushels that I actually produce. It’s not supposed to help on those bushels. The reason I buy it is to protect me from not producing bushels that are guaranteed. And that has happened to me 4 times in the past 12 years.
I need to manage my price risk. So I hedge bushels when the price reaches a level I feel good about. What I will struggle to recover from is a short crop where I need use my working capital to buy bushels I didn’t produce at $7 to cover bushels I sold at $5. And that’s why I don’t buy HPE. | |
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The case for harvest price exclusion (RP-HPE)
