It’s that time of year again. Farmers across the country are deciding what to do with their crops come harvest time. Will they sell out of the field? Will they put the grain in the bin to market later? Every producer’s situation is different, but Don Roose of U.S. Commodities told “AgDay TV” host Clinton Griffiths producers need to have a plan in place now.
“I think what a producer does is look at his own situation,” Roose said. Do you have to sell a certain number of bushels out of the field for cash flow purposes? If so, you may want to consider your ownership options. “When you’re marketing below the cost of production, you do probably want some retained ownership structure in case weather becomes an issue again this spring,” he said.
If you want to hang on to your corn in the hope of better prices, you need a storage plan, according to Roose. “You do have a carrying charge in corn, so if you have storage, use it to your advantage,” he said.
It might be a good idea to sell soybeans soon. “There is a premium structure in beans, so November beans are higher than January and February,” Roose said. “You really shouldn’t sit on beans.”
Instead, he advised growers to sell beans and retain ownership in case a better price opportunity presents itself.