Don’t Forget About 2013 – 2015 crops
With the weather market rally of recent weeks, we sometimes forget that these rallies also raise prices for the next couple of crop years. This rise, in many cases, can provide a chance to lock in profits for those crop years that may not materialize if you wait until the actual crop year arrives. As the saying goes, the way to defeat high prices is with high prices.
We know that with these high prices, there is many acres around the world that will be planted to corn next year and there will likely be more CRP acres coming on line. If, as a grower, you can lock in prices over $6 for the 2013 crop year and the high $5 range for 2014 and 2015, it is certainly worth reviewing your budget to see if it makes sense to at least lock in your hard costs.
Generally, a weather market rally such as this, tends to go very high and then retreat in a very quick period of time. There is a substantial chance that the high in this market will be seen before August 1.
Are you ready to take advantage of it for not just this year, but the next two or three.
Paul Neiffer, CPA
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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