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If levees break, pull storms across the country and destroy much of the crop or as a hellish heat in the U.S. burns in recent weeks, the corn in the fields, off they go: the speculators. Then they bet on rising prices for corn, canola and wheat. But even in normal times it understand major investors, hedge funds and banks to make the virtual trade of food checkout. Many billions flowing into this business even though this form of monetary expansion is strongly suspected, on the real markets to raise the price of food in the air and to be responsible for hunger in the world. After all, the first banks to get out. German farmers does not seem to irritate. Also some dairy farmers now think about whether they should go into the betting business to hedge the prices of their products. Gamble with milk? An idea that does not suit all. However, the farmers have no choice but to deal with the modern possibilities of price protection. It is the liberalization of its market, which forces them to do so. It used to be the state with his regime, which protected the peasants against uncertainties. If the EU intervened and bought up surpluses, milk lakes and butter mountains were often the result. But those days are long gone. In the agricultural sector, more and more regulations are eliminated. Governments in the EU expect their farmers to get fit for the global market. Only a grace period remains air jordan for sale for them yet. Currently, the dairy market is regulated as before by using a quota. The determines how much milk may produce every country and every farmer. In 2015, this quantity limitation falls away. Then each farmer may produce in the EU as much milk as he wants. Experts expect that the German market is initially flooded and the prices drop dramatically: For the dairy farmers a horror scenario. Farmers who breed pigs or grow crops, have already experienced what it means to be delivered to the world market. The competition is growing threatening, even if only virtually. It comes in the form of world market prices, which form on international stock exchanges. Therefore, it seems wise to inform yourself there or possibly mitzuspekulieren. However, the stock market trade in dairy products is just beginning. Although offer trading places as the stock exchanges in Chicago or Paris for some time the possibility of price protection on. But for a German farmer Eurex is closer. It is the German derivatives exchange for agricultural commodities in Frankfurt. For almost two years, she has contracts in the program, making it possible to hedge the prices for butter and milk powder. Used is still little. How is that even possible? The idea for the so-called commodity futures is awesome in principle. The specific contracts on the stock exchange are called futures and make it possible to achieve an assured price for the sale of goods in a few months. The stabilizing revenues, making the economy more easily. Farmers can learn speculating in seminars Yet the world of financial jugglers is not easy to see through. Banks and stock exchanges offer products with imaginative names. In addition, there are futures, options and swaps, or you can go long or short. And then there are the fees. In some cases, collateral must be deposited or it must be nachgeschossen capital. This requires a lot of calculation, and there is great danger that the betting professionals compatriots are in the banks and the stock markets always a few rumors ahead. It takes some time to understand it all, says Hans Jürgen Seufferlein, managing director of the Bavarian milk producers' association. He has one of those seminars attended, which has offered the Kiel Institute for ife food industry in this early summer. Institute chief Holger Thiele and his colleague Henrike Burchardi are outspoken expert on the dairy industry. Supported by management consultants and market experts, they brought the farmers in more detail how the thing works with futures contracts. Subsidizes the training of farmers, the Agricultural Bank pension together with the Eurex derivatives exchange. Seufferleins impression at the moment is still that these tools are not really suitable for farmers. For dairies, however, they could be quite interesting, he says. Because milk can not be stored as grain or cocoa, there are specific aspects. So far, only butter or milk powder are traded on the stock exchanges. The farmer sells raw milk, which does not simply estimates and projections. In brigen so Seufferlein, produced most of Bavarian farmers with an average of 30 cows to small amounts in order to go public. In this world is thought in very different orders of magnitude. For farmers in air jordan 1 retro for sale North and East of the entry would have called into question. Even Heinz Korte, vice president of the Farmers Association of Lower Saxony, has cleverly done on one of the seminars. On his farm in Bremervörde are 200 cows. For him it was completely new that farmers not only the price of grain or pork bellies, but also can protect the milk. Euphoria after the seminar still does not come up, says Korte. To this end, the issue was too complex. Farmers simply would have to deal more with it. the opposite of gambling The farmers gamble not, they can protect yourself against price fluctuations by selling their products before they are ready. That might even work in dairy significantly better than in cereals, because the yield is less here Depending on how environmental influences. This limits the risk to have indeed secured the price but to make losses over missing amount as that might be the case for cereals. It would be fatal to have the product already sold in advance, since it is assumed that less amount accrues, but it could be sold more expensive, and the peasants would thus make double loss. Initially, these contracts were intended to ensure, fluctuating commodity prices and revenues to be smoothed exactly the opposite of what the banks. Gamble with milk? While speculators in the pillory, farmers are encouraged to go into the betting business. Pleases the not long ago all. Why not? The farmer must hire only sent it stop. Analogously to Example: A buddy of mine, who is currently in agriculture, recently received a check for € 3000 from the Department of Agriculture, namely that he rears pigs. I hereby would like to also go into the pigs Not rearing industry. Of course I would like to move it in accordance with the rules that are dictated by the EU and its Common Agricultural Policy. My buddy has 40 years reared pigs, and his record profit were converted in 1422 euros in 1969. That is until this year. If he gets 3000 euros for the NichtAufziehen of 50 pigs, I get 6000 euros for the NichtAufziehen of 100? I'm going to content myself first with 4000 not reared pigs, which would then be 240 000 EUR in the first year.