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southern MN | You are not alone. Yours is typical for farmers.
Start slow. Several coops around me have a zero or low cost marketer guy who helps set up a marketing plan & choose price targets. Kind of painless way to get started.
At times I think those fellas might have the coop interest as well as yours at heart, but just for a year or 2, you can pick up some ideas.
Generally you pick out prices that you hope are achievable, and sell 10% or so at each price point.
Re-evaluate your plan every 15-20 days. see if market changes require you to change your plan. Either up or down.
Hopefully you will keep selling a bit higher & higher. If the bottom falls out, you will at least have sold some at a good price. If the market takes off, well you still have some left to sell.
Look to do better than average this way. It's still a guessing game.
Now, then, in _this_ year's market..... We have really good prices. Sounds like we might be short on land for next year, prices could go higher......
But, what if the govt gets too many compaints on high food prices, and CPR land is opened up, or ethanol is imported tax free, or the Funds pull out for some odd reason ......... Heck, we could have above average yields this year on beans & corn.
While grain market might not move to zero, it could drop to a more normal level with any of the above.
This is interesting times, with corn going up & down 40 cents in a short time, & beans doing that in a day or 2. Even the marketing advisors are throwing their hands up in the air, have nothing to compare to, never seen this before so hard to set up a realistic plan based on anything from the past.
Good luck. Gotta jump in & try some time. I've been farming a few decades, just set up forward contracts 18 months ago......
--->Paul | |
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You have my full attention.
