From:	Nobody [nobody@michiganfarmbureau.com]
Sent:	Wednesday, January 18, 2012 9:46 PM
To:	Robb, Lisa
Subject:	CAG Discussion Response


Community Action Group Discussion Response
From: Green Meadow Plow Jockeys in Kalamazoo County
Date: January, 2012
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Question #1: CAG JANUARY 2012 DISCUSSION 
QUESTIONS.

QUESTION #1: What can your local Farm Bureau do to help 
its farmers minimize financial risks from price volatility? 
Collective Marketing? Watching closely for potential 
excessive risk-taking by crop buyers?
List three things.

Answer #1: Promote and/or provide edcation to help 
farmers better understand commodity markets and the 
marketing tools available to them.  The tools can help 
farmers take advantage of the volatility rather than remain 
a victim of the volatility.

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Question #2: What benefit could there be in prohibiting 
speculators from buying and selling commodity futures? 
What are the drawbacks?

Answer #2: Perhaps limits could be placed on trading 
volumes of any one speculator, but this would be difficult 
to enforce and some speculators may represent multiple 
clients.  Improving accuracy of USDA monthly crop reports 
would be a better strategy for reducing volatility. 

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Question #3: In such volatile times, what is the value of the 
Farm Produce Insurance Fund that Michigan currently has? 
Should the fund have more money in it during periods of 
wide price swings?

Answer #3: This fund protects farmers who deliver in the 
event of an elevator financial failure.  This protection 
remains very important.  Grain buyers need to also clearly 
understand grain markets to avoid unforeseen financial 
obligations that risk their business.