As markets have become more volatile, it is more important than ever to increase your awareness of the importance of risk management. One way to add money to your bottom line very quickly is by gathering market information and implementing that information into your own marketing strategy. A marketing plan is a contingency plan of actions that a grower would take in these uncertain times. You need a plan that covers your production costs. Cotton Incorporated has a variety of tools available from written, to radio, to conference call that make it easier than ever for you to gain information for your specific marketing plan. Even if you market through a coop or merchant, you can still gather information, formulate a marketing plan, and add to your bottom line.
Given the ever increasing competitiveness of the agricultural production sector, sound business planning is essential for the health and well-being of operations.
Fundamental concepts behind how futures market contracts and options contracts are used from a price risk management standpoint.