"Where Fillmore County News Comes First"
Saturday, February 28th, 2015
Volume ∞ Issue ∞
- 9:40:54, Feb 27th 2015 - Wood - The City of Peterson's attorney is Dick Nethercut. ... [Read More]
- 4:55:27, Feb 27th 2015 - oh wow - Really people. Having a fit about Kwik Trip and a beer license? Get a lif ... [Read More]
- 3:15:26, Feb 27th 2015 - Who? - Who is the attorney? This sounds familiar of another small town not to far aw ... [Read More]
- 3:09:41, Feb 27th 2015 - What? - "He has been sustained through the huge challenges of the last six years by h ... [Read More]
- 2:59:54, Feb 27th 2015 - BIG ISSUE - One big issue is the terrible internet and cable - There are many people ... [Read More]
- 2:26:10, Feb 27th 2015 - Public Information - Anyone know who the city attorney is for Peterson? ... [Read More]
- 7:18:47, Feb 27th 2015 - WhaT@JoKE - Happy to see i am not the only one that sees the Bully in Fountain farmer ... [Read More]
- 6:51:38, Feb 27th 2015 - OH WOW - Fountain farmer there u go again trying to start a fight. U know there is fr ... [Read More]
- 3:01:47, Feb 26th 2015 - FountainFarmer - doc, I'm a recording secretary for an organization and items like ... [Read More]
- 2:42:22, Feb 25th 2015 - doc - Oh, FountainFarmer, the 3.2 license was just renewed then. That's big news. ... [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