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 Evaluation Tools
When hedging with any type of price protection, it is helpful to calculate expected selling prices to estimate what future cash flows will be. With LRP insurance, a minimum price is established, meaning you can calculate a minimum expected selling price (MESP).
After a hedge is completed, it is useful to evaluate the outcome of the hedge to determine the actual selling price (ASP). This final price takes into account changes in basis and price movements (if they have any affect). This page can also be used to run hypothetical scenarios to see how changes in price levels or actual LRP basis can affect ASP.
- LRP Basis Page Locate the appropriate basis for your commodity and state.
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