Growers cop price double whammy

Farm Weekly

Type: Article
Knowledge level: Intermediate

Farm Table says:

Farmers prefer post-harvest marketing to either straight forward physical contracts or derivatives, which in general they don’t feel comfortable using.

This article looks into the legacy of the disastrous experience with forward contracts in 2007.

As a result, the majority of Australia’s wheat producers preferred to risk manage their crop post-harvest, said Andrew Weidemann, chairman of Grain Producers Australia (GPA).

“Farmers prefer post-harvest marketing to either straight forward physical contracts or derivatives, which in general they don’t feel comfortable using.” This meant missed higher lock in values earlier in the year.

2016 - Australia - Farm Weekly
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