Don’t Miss a Marketing Opportunity
Since the June crop report came out, wheat has rallied over a $1 per bushel, corn is up about 50 cents and soybeans have rallied also. Now, it appears that the world wheat supply is looking at drought issues around the world (except for our hemisphere it seems) and this is continuing to help wheat prices rally.
Although I am not a marketing expert, as a CPA, it is always good to review your farm budget for the year and I believe that for most of our farmers, especially wheat farmers, your estimated crop price is less than what the market it now. Therefore, you should review with your marketing expert what options you have right now such as taking advantage of forward hedging, buying a call, etc.
I remember when I was in my teens and wheat prices had rallied about a $1,50 and I was talking with my uncle. He had not sold any of his crop yet and the market price was very near a round number such as $6.00 a bushel. He told me he was going to sell when it hit that number. As you can guess, it never got to that number and he rode the price decrease all the way down to the very low of the market when he sold.
Make sure this does not happen to you this year.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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