Re:Food security and the coming storm
by colechristensen on Sunday May 29, 2022 @10:48PM
(#31555043)
Calling them forwards implies that they are tradable securities.
I’m talking about going to the local farmers coop and purchasing next years fertilizer, fuel, etc. months in advance for a set price to be paid and delivered in the future.
When you sell your outputs it’s a good idea to buy your inputs at the same time. The outputs are often exchange traded commodities, the inputs are often contract purchases with local dealers although you can also hedge with appropriate exchange traded commodities.
I’m talking about going to the local farmers coop and purchasing next years fertilizer, fuel, etc. months in advance for a set price to be paid and delivered in the future.
When you sell your outputs it’s a good idea to buy your inputs at the same time. The outputs are often exchange traded commodities, the inputs are often contract purchases with local dealers although you can also hedge with appropriate exchange traded commodities.