Disclaimer: This web page is designed to aid farmers with their marketing and risk management decisions. The risk of loss in trading futures, options, forward contracts, and hedge-to-arrive can be substantial and no warranty is given or implied by the author or any other party. Each farmer must consider whether such marketing strategies are appropriate for his or her situation. This web page does not represent the views of Kansas State University. 
Disclosure:  Dr. Barnaby’s research was the basis for the privately developed Crop Revenue Coverage.

Workshop on Options, Futures, and Crop Insurance

                The objective of this 2-hour workshop is to update farmers on recent changes to the crop insurance program.  Side-by-side comparisons of CRC, Revenue Assurance, and MPCI will be demonstrated.  Other major changes to the crop insurance program for 2002 will also be covered.  In addition, put options, a form of price insurance, will also be covered.  Finally, discussion will allow growers to consider the combination of price insurance and crop insurance to manage financial risk as measured by gross revenue on crop acreage.

            Worksheets will be provided to producers to allow them to test the various outcomes.  Participants will calculate the net returns when alternative insurance programs are combined with put options.  The marketing loan will also be included in the cash flow analysis worksheets.  In addition, the instructor will cover any questions or issues about futures, options, forward contracts, minimum price contracts, other crop insurance, and risk management tools.  In addition, government program questions will also be answered from the audience.