How will you respond to today’s profit opportunities? First, understand how the changes in market prices impact your operation, says Matt Bennett, owner of Bennett Consulting and partner with AgMarket.net.
“We haven’t had these profit opportunities in the last eight years,” he says. “The additional income created can heal a farm if handled properly.”
Bennett suggests asking yourself:
- How well do I know my farm?
- How much has my net income increased?
- With farm income rising, am I adjusting my lifestyle?
- What is an honest assessment of the farm’s financial health?
- What is the best use of any additional income?
“What decisions will make your business more successful? Making the most of your ‘good fortune’ should be a clear goal,” he says.
Because of tight global stocks, Bennett says early-harvest corn or soybeans will be in high demand next year. Keep that in mind as you finalize planting plans.
Bennett says being 50% sold of your average production history for 2021 production, is a good goal, as long as you stay flexible.
“Put a floor in the market, then put yourself in the position where you can benefit from a market that goes up,” he says. “Just because you’ve made a sale doesn’t mean you’re a bear. Your risk is greater to do nothing when prices are higher.”
