With the turmoil in the world commodity markets and the concern about the flooding and weather conditions in the US, farmers can expect that their commodity prices are going to whipsaw up and down very rapidly over the next several months. A key to not getting personally whipsawed is to have a written plan in place for when you plan on selling your crop. This written plan should have very detailed triggers for what causes the sell decision.
Published on: 08:25AM May 17, 2011
Too many farmers verbally tell their neighbor they will sell the crop at $5 and it never quite hits this price. Many farms are now approaching $5 million in sales or higher and this requires a more detailed disciplined approach to selling their crop. Also, using market professionals to help sell your crop is worth a consideration.
What is your plan and is it in writing?!