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A comment on Food security and the coming storm. Parent comment

Re:Food security and the coming storm by rfrey on Monday May 30, 2022 @12:13AM (#31555413)
Why? Wouldn't a farmer just buy the futures contract (or an option on it), then liquidate and use the profit to offset the loss on the spot purchase? I was under the impression that hedgers never take delivery.
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Re:Food security and the coming storm by vkou on Monday May 30, 2022 @04:42PM (#31563423)
Hedges who sit in an office at Wall street never take delivery.

If you're a person who actually needs the future, you need to take delivery. This makes sense on an industrial mega-farm scale, but doesn't make sense at the private-farm scale.

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