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Your Profit: Incremental sales result in a great average price

Agriculture.com Staff 09/01/2009 @ 1:58pm

Growing up on a southwest Minnesota farm, I loved listening to the Minnesota Twins on the tractor radio.

The Twins did not have a big budget or many home run hitters, but they played competitive baseball. The managers managed with the resources they had. A lot of the years they were successful in playing small ball. They would bunt, hit singles, steal bases, and win games by manufacturing runs. Along the way, they won two World Series.

What does this have to do with marketing? I look at the farmers who were successful in selling their 2009 crop. They managed their marketing. They had a plan. They hit singles by making a series of incremental sales. As prices rallied, they made scale-up sales into the market as profits went higher. These successful farmers used a combination of risk-management tools. They used a combination of crop insurance, hedges, hedge to arrive, and put options. The farmers who did not have a plan and hoped for higher prices -- well, they are mostly still hoping.

I have outlined on the December 2009 CBOT Corn chart and the November 2009 CBOT Soybean chart where I made sales recommendations for the crop you will begin to harvest in the next 30 to 60 days.

Growing up on a southwest Minnesota farm, I loved listening to the Minnesota Twins on the tractor radio.

Following are the six characteristics of the farmers who created a successful marketing plan in 2009.

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