Jan 23, 2014
As most of you know, I recently opened an office in Independence Iowa so Trade the Farm can help serve our farmer clients in a place closer to home. We just hosted a marketing meeting last week with farm groups, grain seed dealers, fertilizer companies and grain elevators. At this meeting I noticed many of our farmers are getting more interested in the futures market again, here’s why.
Most farmers are committed to growing in 2014. An average Iowa farmer will spend $800-900/acre to put in his crop. At our current corn price of $4.25, having a good yield of 200 bushels an acre will not even cover total input costs, much less any other unforeseen disasters that always seem to crop up. This makes farmers very anxious, as it should. We all know that crop insurance rates will be set in February and with the price of corn and beans trending down because of rains in South America the outlook dims further.
This is the first year in a long time where the question isn’t how much money am I going to make growing corn, but CAN I make money growing corn? Our young farmers who don’t own their land are probably looking at the biggest risk especially with land, seed and machinery prices at record highs.
This is why farmers need our help. Most farmers know that bad things can and do happen and are probably prepared for a bad year. But what if we have low corn prices for not just one year, but three?
Can you, the farmer, make money selling $4 corn? Corn at $3.50.
Let me know what you think. Call 1-855-737-FARM. Tweet me @tradethefarm.
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