Farmers Share Corn Profit Goals

June 20, 2018 01:36 PM
Farm Journal Pulse

The price of corn is never far from farmers’ minds. To gauge profit goals, the Farm Journal Pulse asked this question: At what price do you expect to make money on your 2018 corn crop?

For almost half of the respondents, corn needs to top $4 per bushel for them to turn a profit. That could be a challenge because USDA’s Economic Research Service expects the midpoint of the price range to be $3.80.

Calculating a price target is the first step so you know when to pull the trigger, says Chris Barron, director of operations and president of Carson and Barron Farms in Rowley, Iowa. From there, he suggests setting sales increments to meet cash flow needs. Use futures and options to protect downside risk, leave the top side open or both.

“It’s not a question of whether a profit opportunity will present itself,” says Barron, also a financial consultant for Ag View Solutions and a Top Producer columnist. “Instead, it’s a question of if you will take advantage of that opportunity and to what degree. Be ready because sometimes the best opportunities last only days if not minutes.”

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Spell Check

Dodge City, KS
6/20/2018 09:36 PM

  Want $6.00 corn?

Menlo Park, CA
6/20/2018 11:15 PM

  Hmmm! Let's see, December corn currently trading at $3.72 less a 40 cent negative basis leaves current price at $3.32. Even the 8% who think they make money at $3:00 to $3:50 may very well get what they voted for. Negative income and reduced balance sheet. Better hope the liar comes through on his promise and starts sending welfare checks to farmers.

flying farmer
6/21/2018 07:29 AM

  Hey Scott, newsflash, it is not Trumps fault that farmers fell for the sucker idea that to be profitable in an OVERSUPPLIED market we need to FLOOD the market with EVEN MORE. Not hard to understand why the price is down and will continue to be until we stop trying to yield our way out of a poor financial condition CAUSED BY TO HIGH OF YIELDS. So simple even a caveman can do it, but apparently not farmers. "Stupid people, I see stupid people everywhere"


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