Farm Management Specialist
University of Missouri Extension
|April 2, 1999
Marketing While You're Planting
Early spring tillage and anhydrous applications are off to a quick start. Planting will soon begin and production activities will occupy much of your time, leaving little time for marketing and financial management. This means that marketing and management plans need to be in place before this big work load occurs.
Get pricing goals set. Spring price highs often occur during planting season. Having price targets in mind prepares you to act quickly. Determine your cash price goals and calculate the new crop futures prices it takes to get them. Listening to market reports on the radio or a quick check of electronic market information sources will let you know if your price objectives have been reached. Then a quick phone call to the elevator or your broker can make the sale and youre back to planting. Many elevators offer another alternative by letting you set cash price targets and completing the sale for you if the price is achieved.
Set both upside and downside price targets. Market risk is very high this year. Upside potential may be limited, without weather problems, and there is considerable downside risk if large crops are produced. Use reasonable upside price goals to seek profitable prices on rallies. If prices dont reach your goals, have downside price targets to protect income or limit losses before prices fall dramatically. It is important to have both prices in mind (or written down) so that you recognize them and can react quickly during a busy time of the year.
While its easy to push marketing aside during busy seasons, it is at least as critical to profitability as production activities. It might even be the key to business survival this year! Having a market plan in place, with price goals, makes these management tasks much easier to accomplish during long hours in the field.-- Melvin
****Market Outlook Conference***
University of Missouri marketing specialists will provide
outlook information for crops and livestock along with an agriculture policy update. This
is important information for use in completing your spring marketing plans. While field
work is getting under way, it is worthwhile to quit early one day to attend one of these
conferences to get a final update on market strategies before you get "buried"
in field work.
Decisive Marketing - April 2, 1999