What are you doing for price protection?

The volatility in the market right can easily swing prices in one direction or the other very quickly.

Margin Protection allows you to obtain a projected price in August/September ahead of the next season’s crop. For federal crop insurance, the projected price is not set until February of the current crop year. Being able to capture a floor price 5 months in advance is valuable price protection.

To take this one step further, Rain and Hail is offering Margin Price Option (MPO) to capture additional price protection opportunities.

By purchasing MPO, you are buying up the Margin Protection Price.

(Up to 25 cents on corn and 60 cents on beans)

Optional Features:

  • You can purchase the Market Price, which refers to the most recent daily settlement price.
  • You can purchase a Marketing Period Price, which is the monthly average of May, June, and/or July.
  • You can purchase both the Marketing Price and a Marketing Period Price.

The MPO coverage will be based on the highest obtained price. The maximum coverage allowed is $1.00 on corn and $2.00 on soybeans.

There is value is diversifying your price protection. You can lock in prices today and have the opportunity to capture higher prices later.

You may not want to put all your eggs in one basket…