Steve Scott says when he first starts working with new clients he asks them to provide a break-even number and an important profit level number to help them set a price floor.
“I don’t want to be looking down and not see a price floor when I’m selling my crops,” said Scott, president of Scott-Agri in Little Rock, Ark., told producers attending the Agricultural Council of Arkansas’ spring board of directors meeting.
On the other hand, Scott wants his growers to be able to take advantage of any prices rises that may occur. He urges growers to provide a price floor and an opportunity to participate in market rallies by using puts and calls to market their crops.
“At some point, prices will go up, usually when it’s unexpected,” he said, “And you want a marketing strategy that allows you to protect yourself from price declines and profit from any increases in price. The Agricultural Council of Arkansas’s board meeting took place at East Arkansas Community College in Forrest City.
To see the first video in this series, click on http://www.deltafarmpress.com/marketing/futures-markets-are-not-predictable-and-s-problem.