Right, and I guess a key point to underline here is that the farmer is insuring himself against what he can sell his product for. He is not insuring himself against profitability, which is where cost-of-production models come in. Cost-of-production models basically insure profitability, as opposed to sale price based on what the market is telling you. Would that be a fair...?
On December 15th, 2011. See this statement in context.