Year-end planning tips to help boost your marketing confidence
The experienced professionals of AgSurion Risk Consulting provide customized farm marketing and financial advice, so you can grow more and worry less.
As farmers wrap up harvest and come out of the fields this fall, many are evaluating their yields and starting to think about next year’s crop.
“Post-harvest is the perfect time to start planning for the next year. Farmers just spent long hours in the cab witnessing what worked and what didn’t,” says Kent Beadle, director of producer brokerage, CHS Hedging. “But while they may be focused on seed buys and spring fertilizer supply, they should also be thinking about their marketing and risk management plans.”
Year-end planning is a big job and can be stressful for many farmers. With decades of risk management and commodity market analysis experience, Beadle provides these tips for farmers and ranchers who might not know where to start.
Review market conditions. “First, determine if the current markets imply you should sell or store grain. Then meet with your accounting and tax advisor to see what the financial impact is going to be for those decisions. After those discussions, you can start reviewing crop rotation issues and acreage plans for next year.”
Identify what you do well. “Every farmer is very good at some part of their operation, whether that’s agronomy and crop production or machinery maintenance. Farmers should focus on what they do well and hire a professional to help with the things they are not as good at. If you aren’t as confident with marketing, hire someone you can trust that will help you analyze the markets and make sound, reasoned decisions.”
Don’t focus only on dollars and cents per bushel. “A successful marketing plan is developed around gross dollar per acre objectives, as opposed to only dollars per bushel. Work with your trusted marketing professional to review your balance sheet and expense structure to calculate those gross dollars per acre needed to get an appropriate return on your assets and equity.”
Don’t get caught up on past marketing failures. “Marketing decisions can be stressful. Having a plan, with up-to-date information and customized analysis, helps take emotion out of the process. Use your plan as a guide when reviewing markets and see what you can execute on to get those profits locked in.”
For more information on how you can increase your marketing confidence, visit CHSHedging.com
This material has been prepared by a sales or trading employee of CHS Hedging, LLC, and should be considered a solicitation. There is a risk of loss when trading commodity futures and options.