cvacoop.com PROEDGE CONSULTING OUR GRAIN MARKETING FUNDAMENTALS

Size: px
Start display at page:

Download "cvacoop.com PROEDGE CONSULTING OUR GRAIN MARKETING FUNDAMENTALS"

Transcription

1 CONSULTING Do you utilize industry professionals to advise you on the various aspects of your farm business like accounting, insurance, taxes, or technology? How about Grain Marketing? PROEDGE CONSULTING Work one-on-one with your Consultant Monthly sales recommendations Basis/spread analysis and recommendations Online access to your grain marketing profile Breakeven analysis Energy recommendations Local access we live and work in your area! Full service brokerage Eric Erickson ProEdge Consultant Shelby, NE OUR GRAIN MARKETING FUNDAMENTALS Breakeven know what you have invested in the crop Net Revenue vs $$/Bushel focus on making profitable sales instead of trying to guess the high Sell in Percentages crop acres will change, percentages stay the same Be Consistent sell the same percentage prior to harvest each year Diversify the future is unknown, so spread out your risk by making incremental sales while utilizing different strategies Think Big Picture Do not get hung up on individual sales. Total dollars generated is what pays the bills

2 PROEDGE PERFORMANCE The table below shows ProEdge Consulting performance dating back to the 12/13 marketing year. These are benchmarked vs the USDA s Market Year Average (MYA) price for the respective crop year. CORN BEANS 2012/ / / / / $7.50 $7.00 $6.50 $6.00 $6.45 $6.89 $15.00 $14.00 $13.73 $14.40 $13.17 $5.50 $5.19 $12.00 $5.00 $4.50 $4.00 $3.50 $3.00 $4.46 $4.53 $4.15 $3.70 $3.61 $3.93 $4.00 $3.36 $3.20 $11.00 $10.00 $9.00 $10.95 $10.10 $10.01 $9.94 $9.89 $9.47 $9.30 $8.95 $2.50 $8.00 $1,500 $1,300 $1,378 $1,290 $800 $864 $824 $790 $780 $1,100 $1,038 $892 $906 $830 $740 $722 $786 $800 $672 $640 $600 $657 $606 $601 $596 $593 $568 $558 $537 $400 *Assumes 200 bu/acre corn yield *Assumes 60 bu/acre soybean yield Risk Disclosure -The risk of loss in trading commodities can be substantial and past performance is not necessarily indicative of future results. Therefore, you should carefully consider whether such trading is suitable for you or your organization in light of your financial condition. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts.

3 CONSULTING Do you utilize industry professionals to advise you on the various aspects of your farm business like accounting, insurance, taxes, or technology? How about Grain Marketing? PROEDGE CONSULTING Work one-on-one with your Consultant Monthly sales recommendations Basis/spread analysis and recommendations Online access to your grain marketing profile Breakeven analysis Energy recommendations Local access we live and work in your area! Full service brokerage Greg Mockenhaupt ProEdge Consultant Oakland, NE OUR GRAIN MARKETING FUNDAMENTALS Breakeven know what you have invested in the crop Net Revenue vs $$/Bushel focus on making profitable sales instead of trying to guess the high Sell in Percentages crop acres will change, percentages stay the same Be Consistent sell the same percentage prior to harvest each year Diversify the future is unknown, so spread out your risk by making incremental sales while utilizing different strategies Think Big Picture Do not get hung up on individual sales. Total dollars generated is what pays the bills

4 PROEDGE PERFORMANCE The table below shows ProEdge Consulting performance dating back to the 12/13 marketing year. These are benchmarked vs the USDA s Market Year Average (MYA) price for the respective crop year. CORN BEANS 2012/ / / / / $7.50 $7.00 $6.50 $6.00 $6.45 $6.89 $15.00 $14.00 $13.73 $14.40 $13.17 $5.50 $5.19 $12.00 $5.00 $4.50 $4.00 $3.50 $3.00 $4.46 $4.53 $4.15 $3.70 $3.61 $3.93 $4.00 $3.36 $3.20 $11.00 $10.00 $9.00 $10.95 $10.10 $10.01 $9.94 $9.89 $9.47 $9.30 $8.95 $2.50 $8.00 $1,500 $1,300 $1,378 $1,290 $800 $864 $824 $790 $780 $1,100 $1,038 $892 $906 $830 $740 $722 $786 $800 $672 $640 $600 $657 $606 $601 $596 $593 $568 $558 $537 $400 *Assumes 200 bu/acre corn yield *Assumes 60 bu/acre soybean yield Risk Disclosure -The risk of loss in trading commodities can be substantial and past performance is not necessarily indicative of future results. Therefore, you should carefully consider whether such trading is suitable for you or your organization in light of your financial condition. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts.

5 CONSULTING Do you utilize industry professionals to advise you on the various aspects of your farm business like accounting, insurance, taxes, or technology? How about Grain Marketing? PROEDGE CONSULTING Work one-on-one with your Consultant Monthly sales recommendations Basis/spread analysis and recommendations Online access to your grain marketing profile Breakeven analysis Energy recommendations Local access we live and work in your area! Full service brokerage Nathan Hake ProEdge Consultant Humphrey, NE OUR GRAIN MARKETING FUNDAMENTALS Breakeven know what you have invested in the crop Net Revenue vs $$/Bushel focus on making profitable sales instead of trying to guess the high Sell in Percentages crop acres will change, percentages stay the same Be Consistent sell the same percentage prior to harvest each year Diversify the future is unknown, so spread out your risk by making incremental sales while utilizing different strategies Think Big Picture Do not get hung up on individual sales. Total dollars generated is what pays the bills

6 PROEDGE PERFORMANCE The table below shows ProEdge Consulting performance dating back to the 12/13 marketing year. These are benchmarked vs the USDA s Market Year Average (MYA) price for the respective crop year. CORN BEANS 2012/ / / / / $7.50 $7.00 $6.50 $6.00 $6.45 $6.89 $15.00 $14.00 $13.73 $14.40 $13.17 $5.50 $5.19 $12.00 $5.00 $4.50 $4.00 $3.50 $3.00 $4.46 $4.53 $4.15 $3.70 $3.61 $3.93 $4.00 $3.36 $3.20 $11.00 $10.00 $9.00 $10.95 $10.10 $10.01 $9.94 $9.89 $9.47 $9.30 $8.95 $2.50 $8.00 $1,500 $1,300 $1,378 $1,290 $800 $864 $824 $790 $780 $1,100 $1,038 $892 $906 $830 $740 $722 $786 $800 $672 $640 $600 $657 $606 $601 $596 $593 $568 $558 $537 $400 *Assumes 200 bu/acre corn yield *Assumes 60 bu/acre soybean yield Risk Disclosure -The risk of loss in trading commodities can be substantial and past performance is not necessarily indicative of future results. Therefore, you should carefully consider whether such trading is suitable for you or your organization in light of your financial condition. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. Neither the information, nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts.

Wade Johannes. Commodity Risk Manager ProEdge Marketing Central Valley Ag

Wade Johannes. Commodity Risk Manager ProEdge Marketing Central Valley Ag Wade Johannes Commodity Risk Manager ProEdge Marketing Central Valley Ag Farm and cattle feedlot Columbus, NE Graduated from UNL May 1999 Johannes Farms, Inc 1999 to 2005 Cargill in Albion, NE 2005 to

More information

Policies Revenue Protection (RP) Yield Protection (YP) Group Risk Income Protection (GRIP) Group Risk Protection (GRP)

Policies Revenue Protection (RP) Yield Protection (YP) Group Risk Income Protection (GRIP) Group Risk Protection (GRP) Policies Revenue Protection (RP) Yield Protection (YP) Group Risk Income Protection (GRIP) Group Risk Protection (GRP) RP What is Revenue Protection? A Revenue Protection (RP) policy protects a policyholder

More information

Estimated ARC and PLC Payments for 2016 Covered Commodities

Estimated ARC and PLC Payments for 2016 Covered Commodities AGECON-17-01 July 2017 Estimated ARC and PLC Payments for 2016 Covered Commodities Don Shurley and Adam N. Rabinowitz Department of Agricultural and Applied Economics University of Georgia The 2014 farm

More information

Archie Flanders University of Arkansas Northeast Research and Extension Center Keiser, AR. The Farm Bill Decision Making Process

Archie Flanders University of Arkansas Northeast Research and Extension Center Keiser, AR. The Farm Bill Decision Making Process Archie Flanders University of Arkansas Northeast Research and Extension Center Keiser, AR The Farm Bill Decision Making Process Presentation at the 2014 Arkansas Rice Expo Grand Prairie Center August 1,

More information

Commodity Programs in 2014 Farm Bill. Key Provisions

Commodity Programs in 2014 Farm Bill. Key Provisions Commodity Programs in 2014 Farm Bill Gary Schnitkey, Jonathan Coppess, Nick Paulson, and Carl Zulauf University of Illinois The Ohio State University (February 13, 2014) 1 Key Provisions Eliminates direct,

More information

ARC vs. PLC Enrollment Decisions

ARC vs. PLC Enrollment Decisions ARC vs. PLC Enrollment Decisions April 2014 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management FSA Commodity Crop

More information

2012 Harvest Prices for Corn and Soybeans: Implications for Crop Insurance Payments

2012 Harvest Prices for Corn and Soybeans: Implications for Crop Insurance Payments November 1, 2012 2012 Harvest Prices for Corn and Soybeans: Implications for Crop Insurance Payments Permalink URL http://farmdocdaily.illinois.edu/2012/11/2012_harvest_prices_for_corn_a.html The 2012

More information

Seed Cotton Informational Meeting. Price Loss Coverage Program (PLC)

Seed Cotton Informational Meeting. Price Loss Coverage Program (PLC) Seed Cotton Informational Meeting Price Loss Coverage Program (PLC) PLC Overview PLC is an Income Support Program PLC payments are not dependent upon planting of the crop PLC is the default program election

More information

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC)

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Background The 2014 Farm Bill provides several alternative farm programs for mitigating farm production and price risks. The purpose of the

More information

Chart Pattern Secrets

Chart Pattern Secrets Chart Pattern Secrets April 02, 2019 Next Alert: 04/04/19 The Trading System: Application of Trading Chart Patterns with Futures and Option Contracts Copyright 1997 All rights reserved. 1 The dollar made

More information

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC)

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Background The 2014 Farm Bill provides several alternative farm programs for mitigating farm production and price risks. The purpose of the

More information

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC)

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Background The 2014 Farm Bill provides several alternative farm programs for mitigating farm production and price risks. The purpose of the

More information

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC)

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Background The 2014 Farm Bill provides several alternative farm programs for mitigating farm production and price risks. The purpose of the

More information

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC)

Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Agricultural Risk Coverage (ARC) vs. Price Loss Coverage (PLC) Background The 2014 Farm Bill provides several alternative farm programs for mitigating farm production and price risks. The purpose of the

More information

Turner s Take WASDE Expectations vs. Sept WASDE report:

Turner s Take WASDE Expectations vs. Sept WASDE report: Published by: Craig Turner 11/4/2013 4:02:09 PM In this issue 1) CORN: USDA Friday exected to be bearish. Looking to short Corn ahead of WASDE 2) SOYBEANS: Short Bean Ideas with Long Call Protection 3)

More information

Chart Pattern Secrets

Chart Pattern Secrets Chart Pattern Secrets April 09, 2019 Next Alert: 04/11/19 The Trading System: Application of Trading Chart Patterns with Futures and Option Contracts Copyright 1997 All rights reserved. 1 The dollar made

More information

Using Hedging in a Marketing Program Hedging is a valuable tool to use in implementing

Using Hedging in a Marketing Program Hedging is a valuable tool to use in implementing File A2-61 December 2006 www.extension.iastate.edu/agdm Using Hedging in a Marketing Program Hedging is a valuable tool to use in implementing a grain marketing program. Additional information on hedging

More information

December 6-7, Steven D. Johnson. Farm & Ag Business Management Specialist

December 6-7, Steven D. Johnson. Farm & Ag Business Management Specialist December 6-7, 2018 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management 1 Learning Objectives Highlight Current Corn

More information

Primary and Alternative Crop Budgets along with Marketing for Presented by: Josh Tjosaas, Northland College FBM

Primary and Alternative Crop Budgets along with Marketing for Presented by: Josh Tjosaas, Northland College FBM Primary and Alternative Crop Budgets along with Marketing for 2019 Presented by: Josh Tjosaas, Northland College FBM Quick Quiz Which farmer is the most profitable per acre with Spring Wheat at $6.00 per

More information

Managing Margins in 2017

Managing Margins in 2017 Managing Margins in 2017 12 th Farming for the Future Conference Coalition to Support Iowa s Farmers Ames, Iowa Jan. 19, 2017 Alejandro Plastina Assistant Professor plastina@iastate.edu 515-294-6160 Chad

More information

Storing Unpriced Grain: Strategies & Tools

Storing Unpriced Grain: Strategies & Tools Storing Unpriced Grain: Strategies & Tools December 2013 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management Crop

More information

Fall 2017 Crop Outlook Webinar

Fall 2017 Crop Outlook Webinar Fall 2017 Crop Outlook Webinar Chris Hurt, Professor & Extension Ag. Economist James Mintert, Professor & Director, Center for Commercial Agriculture Fall 2017 Crop Outlook Webinar October 13, 2017 50%

More information

The 2014 Farm Bill. Program Selection Mitchell County. Neil Cates Livestock Extension Agent Post Rock Extension District #1

The 2014 Farm Bill. Program Selection Mitchell County. Neil Cates Livestock Extension Agent Post Rock Extension District #1 The 2014 Farm Bill Program Selection Mitchell County Neil Cates Livestock Extension Agent Post Rock Extension District #1 1 Disclaimer This information is based on my understanding of the 2014 Farm Bill

More information

The 2014 Farm Bill. Program Selection. JEWELL County. Sandra L. Wick K-State Research and Extension Post Rock District Crop Production Agent

The 2014 Farm Bill. Program Selection. JEWELL County. Sandra L. Wick K-State Research and Extension Post Rock District Crop Production Agent The 2014 Farm Bill Program Selection JEWELL County Sandra L. Wick K-State Research and Extension Post Rock District Crop Production Agent 1 Disclaimer This information is based on my understanding of the

More information

2014 Farm Bill How does it affect you and your operation? Section II: PLC, SCO, ARC-C, and ARC-I

2014 Farm Bill How does it affect you and your operation? Section II: PLC, SCO, ARC-C, and ARC-I 1 2014 Farm Bill How does it affect you and your operation? Section II: PLC, SCO, ARC-C, and ARC-I 2014 Farm Bill: PLC, SCO, ARC-C, and ARC-I Dr. Aaron Smith Assistant Professor: Row Crop Marketing Specialist

More information

EXAMPLE OF PLC, PLC WITH SCO, AND ARC-CO

EXAMPLE OF PLC, PLC WITH SCO, AND ARC-CO EXAMPLE OF PLC, PLC WITH SCO, AND ARC-CO Prof. Howard Leathers University of Maryland Maryland Agricultural Extension 1 Our website: http://www.arec.umd.edu/extension/crop-insurance Wheat in Northumberland

More information

Agricultural Risk Coverage County (ARC CO) vs. Price Loss Coverage (PLC)

Agricultural Risk Coverage County (ARC CO) vs. Price Loss Coverage (PLC) Agricultural Risk Coverage County (ARC CO) vs. Price Loss Coverage (PLC) Carl Zulauf, Ohio State University, November 2014 The 2014 farm bill gives Farm Service Agency (FSA) farms a 1 time opportunity

More information

Purdue Outlook Update 2011

Purdue Outlook Update 2011 Percent Purdue Outlook Update 211 211 Indiana Agricultural Outlook Corinne Alexander & Chris Hurt hurtc@purdue.edu Ethanol World Economic Growth Dollar Value Surprises and Uncertainty! Change Wheat Production

More information

2012 Drought: Yield Loss, Revenue Loss, and Harvest Price Option Carl Zulauf, Professor, Ohio State University August 2012

2012 Drought: Yield Loss, Revenue Loss, and Harvest Price Option Carl Zulauf, Professor, Ohio State University August 2012 2012 Drought: Yield Loss, Revenue Loss, and Harvest Price Option Carl Zulauf, Professor, Ohio State University August 2012 This article examines the impact of the 2012 drought on per acre revenue for corn

More information

Estimated Payments Under the 2014 County Agricultural Risk Coverage Program in Maryland

Estimated Payments Under the 2014 County Agricultural Risk Coverage Program in Maryland d s Under the Agricultural Risk Coverage Program in Maryland Howard Leathers and Paul Goeringer Department of Agricultural and Resource Economics University of Maryland Extension University of Maryland,

More information

1. A put option contains the right to a futures contract. 2. A call option contains the right to a futures contract.

1. A put option contains the right to a futures contract. 2. A call option contains the right to a futures contract. Econ 337 Name Midterm Spring 2017 100 points possible 3/28/2017 Fill in the blanks (2 points each) 1. A put option contains the right to a futures contract. 2. A call option contains the right to a futures

More information

2015 New Crop Marketing. Ed Kordick Iowa Farm Bureau Federation. February, Pre-harvest marketing with Revenue Protection Crop Insurance

2015 New Crop Marketing. Ed Kordick Iowa Farm Bureau Federation. February, Pre-harvest marketing with Revenue Protection Crop Insurance 2015 New Crop Marketing Ed Kordick Iowa Farm Bureau Federation February, 2015 Objectives Get back to the basics: Understand the tools, Have a revenue perspective And realistic goals Pre-harvest marketing

More information

Top Producer Intercontinental Hotel Chicago, IL

Top Producer Intercontinental Hotel Chicago, IL Top Producer Intercontinental Hotel Chicago, IL January 22, 2009 Risk Management with Crop Insurance JAMIE WASEMILLER & CHRIS McCRAY STRATEGIC MARKETING SERVICES, INC. SILVEUS INSURANCE GROUP www.jerrygulke.com

More information

Creating Your Marketing Plan

Creating Your Marketing Plan Creating Your Marketing Plan Jeff Peterson Heartland Farm Partners 402 366 4694 jeffpeterson@heartlandfarmpartners.com www.heartlandfarmpartners.com Topics Developing a marketing plan Answering the essential

More information

Econ 337 Spring 2016 Midterm 3/8/ points possible

Econ 337 Spring 2016 Midterm 3/8/ points possible Econ 337 Spring 2016 Midterm 3/8/2016 100 points possible Fill in the blanks (2 points each) 1. A put option contains the right to sell a futures contract. 2. A call option contains the right to buy a

More information

Grain Marketing. Innovative. Responsive. Trusted.

Grain Marketing. Innovative. Responsive. Trusted. Grain Marketing Extension is a Division of the Institute of Agriculture and Natural Resources at the University of Nebraska Lincoln cooperating with the Counties and the United States Department of Agriculture.

More information

DCP VERSUS ACRE in 2013 For Indiana Farms

DCP VERSUS ACRE in 2013 For Indiana Farms DCP VERSUS ACRE in 2013 For Indiana Farms The extension of the last farm bill for 2013 crops means that individuals need to make the decision of whether to participate in the regular Direct and Countercyclical

More information

11/14/2011. Bradley D. Lubben, Ph.D. Special thanks to: Federal Budget. Economy Farm & General Economy. Politics. Super Committee (more politics)

11/14/2011. Bradley D. Lubben, Ph.D. Special thanks to: Federal Budget. Economy Farm & General Economy. Politics. Super Committee (more politics) John Deering Agriculture and Specialist Colorado State University Extension Special thanks to: Bradley D. Lubben, Ph.D. Extension Assistant Professor, Policy Specialist t& Director, North Central Risk

More information

Farm Bill Meeting Stoddard County

Farm Bill Meeting Stoddard County Farm Bill Meeting Stoddard County David Reinbott Agriculture Business Specialist P.O. Box 187 Benton, MO 63736 (573) 545-3516 http://extension.missouri.edu/scott/agriculture.aspx reinbottd@missouri.edu

More information

SOYBEAN COMPLEX SPRING OUTLOOK

SOYBEAN COMPLEX SPRING OUTLOOK 30 141 W. Jackson Boulevard THE HIGHTOWER REPORT FUTURES ANALYSIS & FORECASTING Suite 4002 Chicago, Illinois 60604 312-786-4450 / 800-662-9346 www.futures-research.com Special Report SOYBEAN COMPLEX SPRING

More information

Steven D. Johnson. What s Different in Crop Insurance?

Steven D. Johnson. What s Different in Crop Insurance? February 2015 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management What s Different in Crop Insurance? Lower Projected

More information

Farm Bill 2014 Agricultural Act of What You Need To Know Doug Yoder, IFB

Farm Bill 2014 Agricultural Act of What You Need To Know Doug Yoder, IFB Farm Bill 2014 Agricultural Act of 2014 What You Need To Know Doug Yoder, IFB 309-557-2993 yoder@ilfb.org FARM BILL OVERVIEW Signed into law February 7, 2014 5 year bill Covers crop years 2014 2018 $956

More information

Soybeans face make or break moment Futures need a two-fer to avoid losses By Bryce Knorr, senior grain market analyst

Soybeans face make or break moment Futures need a two-fer to avoid losses By Bryce Knorr, senior grain market analyst Soybeans face make or break moment Futures need a two-fer to avoid losses By Bryce Knorr, senior grain market analyst A year ago USDA shocked the market by cutting its forecast of soybean production, helping

More information

2014 Farm Bill Update. International Crop Expo February 19, 2015

2014 Farm Bill Update. International Crop Expo February 19, 2015 2014 Farm Bill Update International Crop Expo February 19, 2015 Decisions Operators and Owners Need to Make Yield Update Base Reallocation Choice of Safety Net Yield Update Everyone should attempt to update

More information

Econ 337 Spring 2015 Due 10am 100 points possible

Econ 337 Spring 2015 Due 10am 100 points possible Econ 337 Spring 2015 Final Due 5/4/2015 @ 10am 100 points possible Fill in the blanks (2 points each) 1. Basis = price price 2. A bear thinks prices will. 3. A bull thinks prices will. 4. are willing to

More information

Farm Bill Meeting Scott County

Farm Bill Meeting Scott County Farm Bill Meeting Scott County David Reinbott Agriculture Business Specialist P.O. Box 187 Benton, MO 63736 (573) 545-3516 http://extension.missouri.edu/scott/agriculture.aspx reinbottd@missouri.edu 1.

More information

Crop Storage Analysis: Program Overview

Crop Storage Analysis: Program Overview Crop Storage Analysis: Program Overview The Crop Storage Analysis program aids farmers in making crop storage decisions. The program compares selling grain at harvest to selling grain one to twelve months

More information

Performance of market advisory firms

Performance of market advisory firms Price risk management: What to expect? #3 out of 5 articles Performance of market advisory firms Kim B. Anderson & B. Wade Brorsen This is the third of a five part series on managing price (marketing)

More information

Farmer for the day. Do you have what it takes? How did we do?

Farmer for the day. Do you have what it takes? How did we do? Farmer for the day Do you have what it takes? How did we do? NC State Farmers Situation: Grain farmer that grows corn and beans Expect to grow 100,000 bushels of corn this year Corn cost of production

More information

GRAIN HEDGE POSITION REPORT

GRAIN HEDGE POSITION REPORT GRAIN HEDGE POSITION REPORT CROP: Corn DATE: April 16, 2006 LONG POSITION SHORT POSITION Total Grain on Hand 753896 Grain in Transit Total Offsite Grain Total Stocks 753896 Unpriced Grain Storage 106375

More information

CASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE

CASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE FEFO 11-17 September 27, 2011 CASH RENT WITH BONUS LEASING ARRANGEMENT: DESCRIPTION AND EXAMPLE A cash rent with bonus leasing arrangement is a variable cash rent lease that has a base rent and the potential

More information

The Minimum Price Contract

The Minimum Price Contract The Minimum Price Contract Purpose of a Minimum Price Contract Minimum price contracts are one of the marketing tools available to producers to help them cope with decreases in farm program support, price

More information

Supplemental Coverage Option Insurance SCO. Tim Lemmons Ext. Educator Northeast Research and Extension Center

Supplemental Coverage Option Insurance SCO. Tim Lemmons Ext. Educator Northeast Research and Extension Center Supplemental Coverage Option Insurance SCO Tim Lemmons Ext. Educator Northeast Research and Extension Center tlemmons2@unl.edu 402-370-4061 of Disclaimer This information is based on our reading of the

More information

Market Outlook. David Reinbott.

Market Outlook. David Reinbott. Market Outlook David Reinbott Agriculture Business Specialist P.O. Box 187 Benton, MO 63736 (573) 545-3516 http://extension.missouri.edu/scott/agriculture.aspx reinbottd@missouri.edu Cotton Fundamentals

More information

Step Up Your Grain Game! Crop Economics for 2018

Step Up Your Grain Game! Crop Economics for 2018 Step Up Your Grain Game! Crop Economics for 2018............................... Roy Arnott, P.Ag. & Darren Bond, P.Ag. Farm Management Specialists What we already know Doing your cost of production for

More information

Daily Commentary. Corn (888) Monday, July 22, Today s Trade Action. Today s Closing Prices. Recommendations.

Daily Commentary. Corn (888) Monday, July 22, Today s Trade Action. Today s Closing Prices. Recommendations. Corn The market finished lower but off it earlier lows as soybeans supplied support for the corn market today. The USDA cut the good to excellent rating by 3 points in crop condition report released after

More information

factors that affect marketing

factors that affect marketing Grain Marketing / no. 26 factors that affect marketing Crop Insurance Coverage Producers who buy at least 80 percent Revenue Protection for corn are more likely to indicate that crop insurance is an important

More information

Agricultural Act of 2014

Agricultural Act of 2014 Farm Bill Cash Flow 2017 Outlook Conference for Agricultural Lenders Grand Forks Oct. 16 Fargo Oct. 31 Andrew Swenson Extension Farm Management Specialist Department of Agribusiness and Applied Economics

More information

2008 FARM BILL: FOCUS ON ACRE

2008 FARM BILL: FOCUS ON ACRE 2008 FARM BILL: FOCUS ON ACRE (Average Crop Revenue Election) Carl Zulauf Ag. Economist, Ohio State University Updated: October 3, 2008, Presented to USDA Economists Group 1 Seminar Outline 1. Provide

More information

INSIGHTS FROM AGRICULTURAL LENDERS. January 11 th, 2019 Top Farmer Conference Beck Agricultural Center Dr. Brady Brewer

INSIGHTS FROM AGRICULTURAL LENDERS. January 11 th, 2019 Top Farmer Conference Beck Agricultural Center Dr. Brady Brewer INSIGHTS FROM AGRICULTURAL LENDERS January 11 th, 2019 Top Farmer Conference Beck Agricultural Center Dr. Brady Brewer bebrewer@purdue.edu AGRICULTURAL LENDER SURVEY Survey expectations and past results

More information

2014 Actual Average County Yield. times. higher of: Month Market Year Average Price or National Loan Rate 86% times

2014 Actual Average County Yield. times. higher of: Month Market Year Average Price or National Loan Rate 86% times Cotton Transition, Price Loss Coverage, County Agricultural Risk Coverage, and Individual Agricultural Risk Coverage Diagram for the 2014 Crop Year May 15, 2014 Step 1: Producers on a farm must make a

More information

Tools For a Carry Market Tregg Cronin

Tools For a Carry Market Tregg Cronin Tools For a Carry Market Tregg Cronin Cronin Farms, Inc. Halo Commodities Background Fourth Generation, Century Farm in Gettysburg, SD 8,500 acres of corn, soybeans, spring and winter wheat, sunflowers,

More information

Crop Insurance for Tree Fruit Producers. 1 Dyson Cornell SC Johnson College of Business

Crop Insurance for Tree Fruit Producers. 1 Dyson Cornell SC Johnson College of Business Crop Insurance for Tree Fruit Producers 1 Dyson Cornell SC Johnson College of Business It s farming, so it s not easy that s for sure. The weather and the changing variability in the weather in recent

More information

Crops Marketing and Management Update

Crops Marketing and Management Update Crops Marketing and Management Update Grains and Forage Center of Excellence Dr. Todd D. Davis Assistant Extension Professor Department of Agricultural Economics Vol. 2018 (2) February 14, 2018 Topics

More information

Crop Insurance. Background

Crop Insurance. Background Crop Insurance Background RMA (Risk Management Agency) a division of USDA sets the: Rules Prices Oversees the industry Government subsidizes the premiums 1 Background All insurance companies have the exact

More information

A BULLISH CASE FOR CORN AND SOYBEANS IN 2016

A BULLISH CASE FOR CORN AND SOYBEANS IN 2016 A BULLISH CASE FOR CORN AND SOYBEANS IN 2016 Probabilities for higher prices, and the factors that could spur price rallies. Commodity markets tend to move on three variables: perception, momentum and

More information

Soybeans face long road End to tariffs wouldn t help 2018 exports much By Bryce Knorr, senior grain market analyst

Soybeans face long road End to tariffs wouldn t help 2018 exports much By Bryce Knorr, senior grain market analyst Soybeans face long road End to tariffs wouldn t help 2018 exports much By Bryce Knorr, senior grain market analyst Forecasting grain prices is relatively easy in normal times. Most models assume the future

More information

Suppose a farmer is eligible what triggers a corn PLC Payment? Suppose a farmer is eligible what triggers a corn County ARC Payment?

Suppose a farmer is eligible what triggers a corn PLC Payment? Suppose a farmer is eligible what triggers a corn County ARC Payment? AAE 320 Fall 2016 Final Exam Name: 1) (20 pts. total, 2 pts. each) True or False? Mark your answer. a) T F Wisconsin is the world s largest cranberry production region, producing almost half of global

More information

PROCRASTINATOR'S FARM BILL UPDATE. Paul Goeringer, Extension Legal Specialist, Women in Ag Wednesday Webinar March 11, 2015

PROCRASTINATOR'S FARM BILL UPDATE. Paul Goeringer, Extension Legal Specialist, Women in Ag Wednesday Webinar March 11, 2015 PROCRASTINATOR'S FARM BILL UPDATE Paul Goeringer, Extension Legal Specialist, Women in Ag Wednesday Webinar March 11, 2015 Individual Farm Level Details are available from a crop insurance agent (list

More information

Case Studies on the Use of Crop Insurance in Managing Risk

Case Studies on the Use of Crop Insurance in Managing Risk February 2009 E.B. 2009-02 Case Studies on the Use of Crop Insurance in Managing Risk By Brent A. Gloy and A. E. Staehr Agricultural Finance and Management at Cornell Cornell Program on Agricultural and

More information

Second Quarter 2011 Earnings Conference Call. 18 May 2011

Second Quarter 2011 Earnings Conference Call. 18 May 2011 Second Quarter 2011 Earnings Conference Call 18 May 2011 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the

More information

Marketing Strategies for Robert Anwender Grain Merchandiser

Marketing Strategies for Robert Anwender Grain Merchandiser Marketing Strategies for 2015 Robert Anwender Grain Merchandiser Marketing Tips for 2015 and Forward! Build a Knowledge Base: Stay in tune with market fundamentals Understand how a volatile dollar affects

More information

Price-Risk Management in Grain Marketing

Price-Risk Management in Grain Marketing Price-Risk Management in Grain Marketing for North Carolina, South Carolina, and Georgia Nicholas E. Piggott George A. Shumaker, Charles E. Curtis Jr. North Carolina State University University of Georgia

More information

2002 FSRIA. Farm Security & Rural Investment Act. (2002 Farm Bill) How much money is spent with the United States Department of Agriculture (USDA)?

2002 FSRIA. Farm Security & Rural Investment Act. (2002 Farm Bill) How much money is spent with the United States Department of Agriculture (USDA)? 2002 FSRIA Farm Security & Rural Investment Act (2002 Farm Bill) Some general background: How much money is spent with the United States Department of Agriculture (USDA)? How much money is spent on farm

More information

2014 Income Tax Webinar

2014 Income Tax Webinar 2014 Income Tax Webinar Charles Brown ISU Farm Management Specialist 515 240 9214 crbrown@iastate.edu Expired Tax Provisions Above the line deduction for certain expenses of school teachers Above the line

More information

Allan Gray and Luc Valentin. Purdue University

Allan Gray and Luc Valentin. Purdue University The 2008 Farm Bill Allan Gray and Luc Valentin Department of Agricultural Economics Purdue University Farm Bill Timeline May 13, 2002 Farm Security and Rural Investment Act of 2002 enacted. Commodity Futures

More information

All Approved Insurance Providers All Risk Management Agency Field Offices All Other Interested Parties

All Approved Insurance Providers All Risk Management Agency Field Offices All Other Interested Parties United States Department of Agriculture Farm Production and Conservation Risk Management Agency Beacon Facility Mail Stop 0801 P.O. Box 419205 Kansas City, MO 64141-6205 February 15, 2018 INFORMATIONAL

More information

UK Grain Marketing Series November 5, Todd D. Davis Assistant Extension Professor. Economics

UK Grain Marketing Series November 5, Todd D. Davis Assistant Extension Professor. Economics Grain Marketing & Risk Management Overview UK Grain Marketing Series November 5, 2015 Todd D. Davis Assistant Extension Professor Risk vs. Uncertainty Most use these words interchangeably in conversation

More information

WHY WE AREN T LIKELY TO SEE A REPLAY OF THE 1980s FARM CRISIS

WHY WE AREN T LIKELY TO SEE A REPLAY OF THE 1980s FARM CRISIS WHY WE AREN T LIKELY TO SEE A REPLAY OF THE 1980s FARM CRISIS Wendong Zhang Assistant Professor, Dept. of Economics Iowa State University Why We Aren t Likely to See A Replay of 1980s Farm Crisis Dr. Wendong

More information

ACE 427 Spring Lecture 6. by Professor Scott H. Irwin

ACE 427 Spring Lecture 6. by Professor Scott H. Irwin ACE 427 Spring 2013 Lecture 6 Forecasting Crop Prices with Futures Prices by Professor Scott H. Irwin Required Reading: Schwager, J.D. Ch. 2: For Beginners Only. Schwager on Futures: Fundamental Analysis,

More information

The Agriculture Risk Coverage (ARC) Program of the 2014 Farm Bill

The Agriculture Risk Coverage (ARC) Program of the 2014 Farm Bill Staff Report No. 2014-11 July 2014 The Agriculture Risk Coverage () Program of the 2014 Farm Bill Michael A. Deliberto and Michael E. Salassi Department of Agricultural Economics and Agribusiness Louisiana

More information

Second Quarter 2010 Earnings Conference Call. 19 May 2010

Second Quarter 2010 Earnings Conference Call. 19 May 2010 Second Quarter 2010 Earnings Conference Call 19 May 2010 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the

More information

Fourth Quarter 2016 Earnings Conference Call. 23 November 2016

Fourth Quarter 2016 Earnings Conference Call. 23 November 2016 Fourth Quarter 2016 Earnings Conference Call 23 November 2016 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning

More information

Section III Advanced Pricing Tools. Chapter 17: Selling grain and buying call options to establish a minimum price

Section III Advanced Pricing Tools. Chapter 17: Selling grain and buying call options to establish a minimum price Section III Chapter 17: Selling grain and buying call options to establish a minimum price Learning objectives Selling grain and buying call options to establish a minimum price Key terms Paper farming:

More information

Crop Insurance & the 2012 Drought. Whitney Wiegel Ag Business Specialist MU Extension

Crop Insurance & the 2012 Drought. Whitney Wiegel Ag Business Specialist MU Extension Crop Insurance & the 2012 Drought Whitney Wiegel Ag Business Specialist MU Extension wiegelw@missouri.edu 14-Day Observed Precipitation (valid 9/10/2012) http://droughtmonitor.unl.edu/dm_state.htm?mo,mw

More information

Common Crop Insurance Policy & Area Risk Protection Insurance 1

Common Crop Insurance Policy & Area Risk Protection Insurance 1 United States Department of Agriculture Farm Production and Conservation Risk Management Agency Beacon Facility Mail Stop 0801 P.O. Box 419205 Kansas City, MO 64141-6205 February 15, 2019 INFORMATIONAL

More information

Fourth Quarter 2014 Earnings Conference Call. 26 November 2014

Fourth Quarter 2014 Earnings Conference Call. 26 November 2014 Fourth Quarter 2014 Earnings Conference Call 26 November 2014 Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning

More information

1. On Jan. 28, 2011, the February 2011 live cattle futures price was $ per hundredweight.

1. On Jan. 28, 2011, the February 2011 live cattle futures price was $ per hundredweight. Econ 339X Spring 2011 Homework Due 2/8/2011 65 points possible Short answer (two points each): 1. On Jan. 28, 2011, the February 2011 live cattle futures price was $107.50 per hundredweight. If the cash

More information

Farm Safety Net. Dr. Alejandro Plastina Assistant Professor, Economics

Farm Safety Net. Dr. Alejandro Plastina Assistant Professor, Economics Farm Safety Net Dr. Alejandro Plastina Assistant Professor, Economics Invited Presentation to the Professional Agriculture Workers Conference Organized by Tuskegee University Opelika, Alabama December

More information

National Marketing Year Average Price less than the Reference Price ($3.70). Suppose a farmer is eligible what triggers a corn County ARC Payment?

National Marketing Year Average Price less than the Reference Price ($3.70). Suppose a farmer is eligible what triggers a corn County ARC Payment? AAE 320 Fall 2016 Final Exam Name: KEY 1) (20 pts. total, 2 pts. each) True or False? Mark your answer. a) T_X_ F Wisconsin is the world s largest cranberry production region, producing almost half of

More information

2014 Farm Bill Overview

2014 Farm Bill Overview 2014 Farm Bill Overview Presented as part of a panel discussion at the City Bank Wealth of Knowledge Seminar Series, March 31, 2014 Key Elements Dairy Program Dairy Product Support and MILC programs replaced

More information

(Lecture notes for the Week 1 Second session, Wednesday, 2/5/14) Introductory Pricing/Marketing Workshop for Grains, On-Line

(Lecture notes for the Week 1 Second session, Wednesday, 2/5/14) Introductory Pricing/Marketing Workshop for Grains, On-Line (Lecture notes for the Week 1 Second session, Wednesday, 2/5/14) Introductory Pricing/Marketing Workshop for Grains, On-Line Review Futures Market Prices Hilker s version to make some points Think of futures

More information

Ohio Agriculture Risk Coverage and Price Loss Coverage Payments for Program Year 2016 Prepared by Ben Brown

Ohio Agriculture Risk Coverage and Price Loss Coverage Payments for Program Year 2016 Prepared by Ben Brown Ohio Agriculture Risk Coverage and Price Loss Coverage Payments for Program Year 2016 Prepared by Ben Brown As the calendar turned to October producers around Ohio and the country started to receive federal

More information

AFPC Crop Decision Aids Data Collection Form and Instructions

AFPC Crop Decision Aids Data Collection Form and Instructions AFPC Crop Decision Aids Data Collection Form and Instructions Use the form on the last page of this document to collect the data needed to enter for the AFPC Decision Aid. Use one data form for each farm

More information

d) T F GRP is the most popular crop insurance policy in Wisconsin for corn and soybeans, especially for small farms.

d) T F GRP is the most popular crop insurance policy in Wisconsin for corn and soybeans, especially for small farms. AAE 320 Spring 2011 Final Exam Name: 1) (20 pts.) True or False? Mark your answer. a) T F Wisconsin s processing vegetable industry may be important in the state, but nationally it ranks quite low. b)

More information

Fundamental Factors Affecting Agricultural and Other Commodities. Research & Product Development Updated July 11, 2008

Fundamental Factors Affecting Agricultural and Other Commodities. Research & Product Development Updated July 11, 2008 Fundamental Factors Affecting Agricultural and Other Commodities Research & Product Development Updated July 11, 2008 Outline Review of key supply and demand factors affecting commodity markets World stocks-to-use

More information

Ohio Agriculture Risk Coverage and Price Loss Coverage Payments for Program Year 2016 Prepared by Ben Brown and Chris Bruynis

Ohio Agriculture Risk Coverage and Price Loss Coverage Payments for Program Year 2016 Prepared by Ben Brown and Chris Bruynis Ohio Agriculture Risk Coverage and Price Loss Coverage Payments for Program Year 2016 Prepared by Ben Brown and Chris Bruynis As the calendar turned to October producers in some counties around Ohio and

More information

Risk Management Agency

Risk Management Agency Risk Management Agency Larry McMaster, Senior Risk Management Specialist Jackson Regional Office Jackson, MS February 3, 2015 USDA is an Equal Opportunity Provider and Employer This presentation highlights

More information

The Common Crop (COMBO) Policy

The Common Crop (COMBO) Policy The Common Crop (COMBO) Policy Agricultural Marketing Policy Center Linfield Hall P.O. Box 172920 Montana State University Bozeman, MT 59717-2920 Tel: (406) 994-3511 Fax: (406) 994-4838 Email: ampc@montana.edu

More information

THE HIGHTOWER REPORT

THE HIGHTOWER REPORT Futures Analysis & Forecasting HightowerReport.com March 21, 214 Strategies for March 31st Report: Non-standard Options New, non-standard options at the CME can be great tools for commodity traders, especially

More information