Don’t Wait Too Long
The Department of Agriculture released many crop reports today. As a result, corn, soybeans and wheat prices were sharply lower on the cash and futures markets. In many cases, the drop was 10% or more.
Prices has steadily risen over the last few weeks and there were many chances to lock in a profit on the new crop. Many times, farmers want to wait for the high of the market to lock in prices and what usually happens is that they get a much lower price than if they simply sell 1/12 of their crop each month.
Every farmer should have a marketing plan (in conjunction with the appropriate help from marketing consultants, if needed). When you can lock in an adequate profit for the crop year, do it!
Usually you will be much better off than trying to go for the highest price.
Every farmer should have a marketing plan (in conjunction with the appropriate help from marketing consultants, if needed). When you can lock in an adequate profit for the crop year, do it!
Usually you will be much better off than trying to go for the highest price.
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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