Harvest time prices could be much lower if the weather improves.
Options offer flexibility to deal with uncertain weather, production potential and markets.
However, options can be expensive and this may make the option strategy seem unattractive. This difference makes the strategy unattractive, even though prices might very well be lower than this at harvest. There are a variety of possible strategies to accomplish this. The idea is to collect the call premium and use it to offset part of the cost of the put premium. This strategy reduces the net premium cost, raises the price floor and still provides flexibility.