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Integrating Crop Insurance and Marketing Decisions

Publication Number: P2917
View as PDF: P2917.pdf

Producers often hear Extension economists and other market advisors talk about the importance of a marketing plan. The point of such remarks is that it is a good idea to give some careful thought to how a crop will be marketed at some point in time before the crop is actually produced.

When most people think about a marketing plan, they think first about when and how to price the crop. Too often, the central goal of a producer’s marketing plan is to pick the highest price. However, the effective management of price risk should be the central goal of producer marketing plans. Common price risk management tools such as forward contracts, futures contracts, and/or options on futures contracts generally figure prominently in these plans. This is entirely appropriate, as risk management strategies employing these tools have proven effective for countless producers over many years.

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Authors

Portrait of Dr. Keith H. Coble
Professor and Head

Your Extension Experts

Portrait of Dr. James Newton Barnes
Associate Extension Professor
Portrait of Dr. Keith H. Coble
Professor and Head
Portrait of Dr. Alba J. Collart Dinarte
Assistant Extension Professor
Horticultural Marketing
Portrait of Dr. Darrin Dodds
Professor and Head
Cotton Agronomics
Portrait of Dr. Joshua Gilchrist Maples
Assistant Professor
Portrait of Dr. Ben Posadas
Assoc Extension/Research Prof
Seafood and specialty crops marketing; Marine and disaster economics
Portrait of Dr. Rebecca Campbell Smith
Assistant Extension Professor

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