And he does. You advised people to get out of the hedges. If they did - and now going short, guess what? Now you've entered the "gambling" stage, and the losses, if there are any, are only tax deductible to the winnings. Good luck! You're probably going to need it.
By my understanding, a farmer can hedge, lift hedges, and re hedge and still be taxed as hedging. Just because you lift a hedge and then put it back on doesn't,t mean it is taxed as a spec trade. Who wants to maintain short positions when the macd has crossed higher unless of course the market prints a high volume key reversal lower in both corn and beans on report day, on a 3 day holiday right after a blood moon lunar eclipse?
That's not accurate. You can lift a hedge and then put another hedge on. If the IRS questions you you would want to show that the hedge is related to your actual production. I doubt if they'd let a corn farmer lift a corn hedge and go short rice. Anywway, didn't he roll the hedges to March?
Thanks Cap. It is still a hedge even though I rolled it. That shows how very little some know or choose to hear. Profits on my old hedges, and I took them. Now profits on my new hedges and I will keepsthem on. So easy a cave man could do it.
I am making more on these hedges on any move then say buying futures on total production outright. This thing is the titanic guys you better sell your beans now off the combine and prepair to buy them back later on with a hedge. The first week in october low isn't going to hold.
