by Ken Root
Listen Here: Profit Matters 2-6-17
As row crop farmers prepare to head to the fields this spring, now is the time to develop a marketing game plan for the growing season.
Bryan Doherty of the Stewart Peterson Group says when it comes to marketing plans for 2017, there are many factors that could direct the futures market. For starters, he says the political climate is the new wildcard.
“We’ve got a new administration. Trump is a question all of the time, but he’s going to do what he says, and wants to negotiate better deals for the U.S. So, hey why not? My question is with corn at 350 a bushel, what do we have to lose?”
Doherty says farmers need to remember that capitol is easy to manage. “In my world I can sit and I can look at capitol or at least the capitol and call options than it is to manage a whole crop when the market volatility picks up because as that volatility picks up, it’s boom or bust.”
Doherty says the most important thing is to be prepared and use the right marketing tool at the right time. “In our research the most riskiest position of all is doing nothing, or harvesting your crop and storing it. My encouragement to farmers is to look at all their tools, use the right tool, right time, and right person. Ignorance isn’t necessarily bliss. It can be, but it can be very costly.”
As farmers prepare for spring planting, Doherty says now is the time to create a marketing plan. “If nothing else, start thinking value per acre.”
