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| Well, from what I understand, the Brazilians have taken to working on "commodity parity" so to speak. Land is worth so many sacks of soybeans. When you buy inputs, you trade crop for it.
Let's say you lock in your costs, the $ continues to fall, which I think it will, and commodity prices also fall, or stay level. You still lose. You are paying with deflated dollars. In my estimation, the best thing to do is buy inputs today, with cash, today, and let the chips fall where they may in the future. I don't wanna get caught playing a currency speculation game, in addition to farming. | |
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Weakening dollar and forward contracts
