From the Farm: Marketing 2020 Crops

The Morning Show

Grain markets have been a challenge for all farmers, since prices offered are generally below the cost of production. And grain merchandisers at elevators are trying to assemble offers that allow farmers some degree of profitability, if they want to take the risk. Stu Ellis visits with one in our report from the farm..

Stu Ellis

Marketing for 2019 crops has certainly been quite difficult and sometimes it is also good to look out into the distance and Conner Bridgman, an ADM merchandiser at Niantic, what would you recommend for looking out to the 2020 crop?

Conner Bridgman

Well, I think you need to keep all options open. 2019 has proved tough marketing. We have had unfriendly USDA reports. Chinese trade deal seems to be always on the horizon, but we haven’t got there. So right now we’ve got a few things that are pretty attractive for the 2020 crop season.

Stu Ellis

Such as…

Conner Bridgman

One specifically is called a one by two and what it allows a farmer to do is, you cn lock in a floor or a minimum price with upside, so, right now depending on where the market is at, we were able to do one for Dec 20 corn at a good profitable level, with upside to a level we have not seen since 2016.

Stu Ellis

What is the risk in that, though?

Conner Bridgman

The risk, specifically, with forward marketing it could be higher, but I think guys need to look at their profitability, and as long as they are making good sales, I think it would be a good option. And we have another called an accumulator that guys might be familiar with. Price a little bit each day, but at a premium to the pricing so it gets it to a level we have not seen in the past six months.

Stu Ellis

Several ways of managing risk for your 2020 grain crop. That’s our report from the farm, I’m Stu Ellis with WCIA3 your local news leader.

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