Here we are again. It’s the middle of February 2020. January is gone and we are rapidly approaching spring. In fact, last week Chuck the groundhog predicted just that; an early spring. Considering the way this “winter” has gone, it doesn’t seem that surprising. So, while you are getting ready for spring and starting to think about planting and making sure you’re ready, don’t forget to think about marketing! If you are unsure where to begin, this is a great starting point.
Take a look at the sheet above. This is a 2020 cost of production sheet for corn, soybeans, and wheat. These are just our average costs that can be used as a guideline for your own operation. Every farm will be different. Now is the time to fill in your own numbers and find your break-even price. Once you know your break-even, you know exactly what price you should be looking for.
Above, you will also see we have a list of suggested target orders. For example, based on our break-even price of $8.48 for soybeans, we suggest putting some targets in at $8.75, $8.95, $9.10, $9.35, and $9.50. Sell a small percentage at each price level and then even more as we get above $9. It is always good to put targets in in increments. Be ready to take advantage of the next jump in the market. Does putting in targets mean you might lose some upside potential? Yes, it’s going to happen. But don’t lose nickels and dimes chasing pennies. It’s hard to not let your emotions get the best of you and to pull the trigger when the market is rallying, but the markets can change in the blink of an eye, don’t be unprepared. Using the quote of the day by Horace, “He has the deed half done who has made a beginning.”
Making the decision is the first and hardest step. Call us today, we are more than willing to help!