Time to consider hedging as part of your market strategy?

Some insiders are suggesting forward contracting as a defense against falling prices and the Farm Credit Corporation considers it a useful tool. But not all lenders are comfortable with the idea

by DON STONEMAN                       

If the pork price downturn this spring slammed your operation’s income because you didn’t have pigs hedged to cover your costs, you are not alone.

“Generally speaking, when the markets fall off, the majority of hogs aren’t hedged,” says Patrick O’Neil, manager of Ontario Pork’s Marketing Division. Prices in mid-May made a strong case for forward contracting, he says.

Better Pork - August 2012