With the volatility in the marketplace, producers need to be actively involved in managing risk. There is a multitude of tools available to producers. Some are simple and some are more complex. One of the more useful tools that is maybe a little more challenging for producers to wrap their heads around is options. Using puts and calls to manage price swings and establish floors can be incredibly valuable to your risk management program.
At NCBA 2011 in Denver, Colorado i spoke with Larry Hicks from CattleHedging.com about options and when producers should find them more useful than just locking in futures.
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