Agricultural Business Management News

  by Dave Bau, Extension Educator, Ag Business Management, U of M Extension Regional Office, Worthington Farmers should develop a marketing plan to take advantage of great prices offered for 2021 and 2022 crops. Marketing plans have many components. What should a farmer include in a marketing plan? Cash flow needs: When starting a marketing plan, a major factor contributing to when a farmer sells crops is when there is a payment or cash flow demand. Start a marketing plan with a list of when cash needs to be generated. Total expected bushels of crops grown: Use historical five to seven year crop yields or insurance proven yields as a starting point for the expected production for the farm. Breakeven price determination: How does a farmer know what a good price is to market crops? By using estimated yields and acres, along with expenses and family living costs, a farmer can determine breakeven prices.  Insurance coverage: Crop insurance coverage can provide a farmer with confidenc

by Dave Bau, Extension Educator, Ag Business Management, U of M Extension Regional Office, Worthington Farmers have a tough decision to make each year when trying to sell their crop at the appropriate time, at profitable levels and the highest price as possible. Current grain supplies are as tight as they were in 2012. The tables below compare prices available from March 2012 to September 2013 and compares current cash prices to future year forward contract cash prices offered at the time. Table 1 soybean prices were collected from data gathered from members of the Ag Business Management marketing groups. Table 1: Farmers Coop of Hanska historic cash corn prices Corn Cash 2011 2012/13 2013/14 2014 12-Mar $       6.25 $        5.11 $        4.98   12-Apr $       6.00 $        5.02 $        4.85   12-May $       5.78 $        4.80 $        4.73 $       4.50 12-Jun $       6.56 $        5.83 $        5.14

by Dave Bau, Extension Educator, Ag Business Management, U of M Extension Regional Office, Worthington Farmers have a tough decision each year trying to market their crops at the appropriate time, at profitable levels and at the highest price possible. Since August 2020, corn and soybean prices have been rising to prices last seen in 2012. Table 1 shows the high and low cash prices for corn and soybeans in Worthington each year. Soybean’s high price was above $17.00 in 2012 and 2013 and corn’s high prices were above $7.00 in 2011, 2012 and 2013. Table 1: Worthington high and low soybean and corn cash prices during year Soybean                                                                                                                   Corn Year High Low Difference   Year High Low Difference 2020 12.49 7.84 4.65   2020 4.41 2.62 1.79  2019 8.89 7.40 1.49   2019 4.37 3.35 1.02 2018 9.82