"Where Fillmore County News Comes First"
Wednesday, March 4th, 2015
Volume ∞ Issue ∞
- 6:39:18, Mar 4th 2015 - disappointed - DOC.....WHY DO U THINK I WORK AT MAYO? BELIEVE ME WHEN MY CHILD GRADUAT ... [Read More]
- 11:11:29, Mar 3rd 2015 - doc - Apparently Harmony Telephone doesn't have billions in cash to spend on internet ... [Read More]
- 7:56:16, Mar 3rd 2015 - Bear - Why does the Journal even print this garbage? I would like to know the drugs t ... [Read More]
- 4:37:50, Mar 3rd 2015 - next - Now let's talk about the idiots who push there snow into the street. Even a 5th ... [Read More]
- 7:24:02, Mar 2nd 2015 - disappointed - I could work from home. But internet is not secure enough ... [Read More]
- 3:43:36, Mar 2nd 2015 - agreed - The cable and internet here is absolutely ridiculous. Harmony residents pay ... [Read More]
- 2:30:46, Mar 2nd 2015 - Be honest - Wood- That is true, but most people won't even spend that. Hopefully, th ... [Read More]
- 10:14:18, Mar 2nd 2015 - Wood - Be Honest, you can ask the Minnesota Information Policy Analysis Division (IPA ... [Read More]
- 6:41:46, Mar 2nd 2015 - gotoutofthere - If the residents would treat the new people with respect maybe they wo ... [Read More]
- 12:48:54, Mar 1st 2015 - Pursuing truth? - By pursuing truth, are you referring to the IRS scandal or the Hold ... [Read More]
Do you feel we should give up on observing Punxsutawney Phil to predict the remaining length of winter?
Q: Will F&M Community Bank advance funds to be used for hedging livestock and continue to advance if there are margin calls?
Mon, Jul 25th, 2011
Posted in Ask the Expert
Posted in Ask the Expert
A: Markets have never been more volatile. A government report or a disease outbreak can shrink margins to unprofitable levels. Many different marketing tools are available, including hedging, but first you must know your production costs so you can lock in a profit.
Hedging has a low initial cost but in a rising market, margin calls can be large. When the market is rising, so is the value of the livestock you plan to sell. You will not realize the price increase but you will not get a lower price than the price you locked. If prices fall, your hedge funds account will increase to offset the price you will receive.
F&M Community Bank cannot predict prices but will fund hedge accounts for farmers that lock in profits.
F & M Community Bank
100 St. Anthony Street N., Preston 507 765 3823
229 Main St. N., Chatfield
507 867 1605