Press the Back
button to go back to the text.
| Table 3. Strategies for
Alternative Farm Types with 600 Acres of Corn -
Net Return Over Cash Flow Costs. Scenario: (65%
probability in 1997) 145 bu/ac yield; $2.15/bu
harvest yr. cash price |
| |
Owner
|
Crop Share
|
Renter
|
Buyer
|
| |
-----------------------
dollars ------------------------
|
| Without risk management -
Local equiv. Price |
|
55,050
|
1,725
|
-7,350
|
-12,750
|
| With risk
management |
|
|
|
|
|
| Pricing only, 60% of TY1;
Buy put in May |
$2.34
|
54,157
|
1,279
|
-8,243
|
-13,643
|
| Pricing only, 60% of TY;
Hedge last wk in June |
2.12
|
50,970
|
-315
|
-11,430
|
-16,830
|
| Insurance only, RA |
|
50,784
|
-408
|
-11,616
|
-17,016
|
| Insurance only, MPCI |
|
50,670
|
-465
|
-11,730
|
-17,130
|
| Pricing + RA, Buy put in May |
2.34
|
49,891
|
-854
|
-12,509
|
-17,909
|
| Pricing + MPCI, Buy put in
May |
2.34
|
49,777
|
-911
|
-12,623
|
-18,023
|
| Insurance only CRC |
|
47,880
|
-1,860
|
-14,520
|
-19,920
|
| Pricing + CRC, Buy put in
May |
2.34
|
46,987
|
-2,306
|
-15,413
|
-20,813
|
| Pricing + RA, Hedge last wk
in June |
2.12
|
46,704
|
-2,448
|
-15,696
|
-21,096
|
| Pricing + MPCI, Hedge last
wk June |
2.12
|
46,590
|
-2,505
|
-15,810
|
-21,210
|
| Pricing + CRC, Hedge last wk
June |
2.12
|
43,800
|
-3,900
|
-18,600
|
-24,000
|
| 1
TY = Trend Yield |
|