RAM (Risk Assesses Marketing) Workshop
Meade County Extension will host a RAM II Workshop at the Extension Office on March 7. This workshop is imperative for anyone who sells agricultural commodities. In a time of low market prices and high inputs, utilizing marketing methods of hedging, options and selling options is very important for profit margins.
The workshop will also explain why many farmers didn't receive a commodity program payment while the farm across the road in the next county received the maximum payment. As a result, in many counties crop insurance will provide most of all of the government's risk protection. Therefore it is important to select the right type and level of crop insurance coverage. this workshop utilizes a case study, with participant's managing a typical grain farm. Participants working the case problem will improve their understanding of the different marketing strategies, crop insurance coverages and how to make the best use of the "free" protection in the FSA commodity program.
Under some conditions one can sell out the money puts and use the crop insurance contract for the money put. Farmers that do this are selling off part of their crop insurance coverage, but it is a part of the coverage that they likely will not use. It is very important that one understand all of the details before they execute this strategy on their farm. In addition, hedging, fences, bull spreads, bear spreads or any other strategy that the participants want to explore will be included in RAM II.
Dr. Art Barnaby and Dr. Dan O'Brien will lead a detailed conversation on how to survive the current low commodity prices with forward contracts, revenue insurance and grain storage. This workshop will utilize a case study, with participants managing a typical grain farm. Participants will have the opportunity to select type and level of crop insurance, decide on FSA program participation and then work through a typical grain marketing year.
Cost to attend is $10, if registered by March1 and limited to 35 participants. The meeting includes snacks, lunch and RAM materials. To register, please call the Meade County Extension Office at 620-873-8790.
