Hog Hedging Decision Tree
Posted in: Economics, Pork Insight Articles, Production by admin on July 6, 2017
“• The goal is to develop a standard operating procedure for risk management, just like every other aspect of the farm.
• Properly executed risk management will reduce volatility and may also increase average margins. (depending on targets)
• With a systematic approach, the futures market can be your friend, not your enemy.
• Eliminate emotion from hedging decisions.
• By doing nothing, you are continuously speculating on lean hogs.”