If another farmer told you, "The average performance difference between cash only marketing programs and futures and options marketing programs is quite small," would you believe them? According to The Pricing Performance of Market Advisory Services in Corn and Soybeans Over 1995-2004, its true. In general, the actual benefit of a futures/options plan over a cash only plan is 1¢ per bushel for corn and 7¢ per bushel for soybeans. If you'd like many other brow raising facts like these, today's article is for you.
If you answered yes to the headline, then our next question should be simple. What is your farm's biggest profit sensitivity under your control? In other words, from year to year, what input or variable makes the biggest impact on how much money you make? If you answered average marketing price, congratulations. But, like most farmers today, you likely spend most of your time managing all the other inputs. Here's our perspective on costs vs. profits.
"You need to treat farming as a business, not a lifestyle." This is our founder's quote of choice when speaking with farmers. Our business, Crop-Side grain marketing, is based on tested ideas that are easy to follow and take the emotions and guess work out of it. The following are the five pillars we base our strategy on, and believe you should too.