Sign In | Create an Account | Welcome, . My Account | Logout | Subscribe | Submit News | Home RSS

Ag marketing clubs to discuss merchandising 2016 grain

November 2, 2016
Reinbeck Courier

Despite record Iowa and U.S corn and soybean production and yield forecasts for 2016, cash flow will likely prove challenging for many farms. Extra bushels should benefit a farm's total crop revenue, but most of these bushels are unpriced and will have higher fixed costs associated with storage and interest charges. This is especially true if you are storing commercially with limited opportunities to capture improved basis. The FSA marketing loan program only provides lower interest financing for up to 9 months. Loan proceeds from these stored bushels are also limited to your county loan rate, which is below the cash value of the crop.

Marketing tools such as a storage hedge, a basis contract or a minimum price contract are readily available to Iowa farmers. The key is knowing your own cost of grain ownership and learning how to separate the futures price from your local basis offered. Learn the advantages and disadvantages of these tools in cash merchandising and meeting your cash flow needs.

The Tri County Ag Marketing group will meet Wednesday, Nov. 16 at the Mid Iowa Co-op Grain Merchandising Office, 209 N. Lincoln, Conrad.

The featured speakers will be Steve Johnson, Farm Management Specialist and Ray Jenkins, Grain Marketing Extension Educator, both with ISU Extension and Outreach. They will team teach on the topic "Merchandising Your 2016 Grain." Participants will move beyond just spot cash, store and wait and forward contract cash sales used to merchandise most unpriced bushels being stored this fall and winter.

There may be a small fee for meeting that can be paid at the door which open at 6 p.m. For further information, please contact the Grundy County Extension Office at (319) 824-6979. No pre-registration is required.



I am looking for:
News, Blogs & Events Web