Farmers across the country are sitting on new crop corn and soybeans. Is it time to get sales underway on those crops? Matt Bennett of Bennett Consulting says he’s advising producers not to get too carried away unless they can sell those grains at a breakeven price.
Here’s his advice: pencil it out. Most farmers know what the majority of their costs are at this point, he says. So take your five-year yield history and multiply it by the price you can get paid today for corn and soybeans. Then, subtract your costs.
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“If you can pencil out a profit it’s not a bad idea to get started on sales,” he told Pam Fretwell on the Top Producer podcast. “It’s a little harder to find black ink on corn than it is on soybeans.”
Bennett says he’s advising farmers to be a little more patient with corn than with soybeans, but he admits margins are pretty tight on both commodities.
You can get more insight on 2018 grain markets from Bennett during the live taping of U.S. Farm Report at the 2018 Top Producer Seminar in Chicago January 23-26 at the Hilton Chicago Hotel Downtown.
Attend 2018 Top Producer Seminar
When: Jan. 23–26
Where: Hilton Chicago Hotel Downtown, 720 S. Michigan Ave.
What: Welcome reception on Tuesday, Jan. 24 with Trust In Food Symposium attendees; business education and Top Producer of the Year banquet on Wednesday, Jan. 25; “U.S. Farm Report” taping and business education with lunch keynote on Thursday, Jan. 26; and sponsor breakfast followed by two mainstage presentations on the global ag economy and event wrap-up at 10:30 a.m. on Friday, Jan. 27
More Info: To register for the seminar or for additional information, visit TopProducerSeminar.com.
Thanks to our 2018 Top Producer Seminar sponsors:
Agrium (ESN), BASF, Bayer, Beck’s Hybrids, Case IH, Channel, Dow AgroSciences, John Deere, KCOE ISOM, DuPont Pioneer, Top Con, Top Third Ag Marketing, Valent
CliftonLarsonAllen, CropZilla, Farmers Business Network, Farmers Edge, Rabo AgriFinance
Advance Trading, AgYield, BMO Harris, Farm Credit, Roach Ag, Richiger, Transition Point Business Advisors