January 6, 2025
Expected 2025 production: 27,000 bushels
Objective: Buy crop insurance to protect my production risk and have 75% of my anticipated soybean crop priced by mid-June.
- Price 5,000 bushels at $12.40 cash price ($12.90 Nov futures) using forward contract/futures hedge/futures fixed contract.
- Price 5,000 bushels at $13.40c/$13.90f, or by April 11, pricing tool to-be-determined.
- Price 5,000 bushels at $14.40c/$14.90f, or by May 12, pricing tool to-be-determined.
- Price 5,000 bushels at $15.40c/$15.90f, or by June 11, pricing tool to-be-determined.
Plan starts on January 1, 2025. Earlier sales may be made at a 75-cent premium and would be limited to 10,000 bushels.
Ignore decision dates and make no sale if prices are lower than $12.40 local cash price/$12.90 November futures.
Exit all options positions by mid-September 2025.