Saving money to make money


For corn, a significant rally will be difficult with the amount of unpriced old crop and another good growing year. End users tell me any board rallies will continue to shake some bushels loose. Many unpriced farmers continue to wait, because they don’t have an exit strategy.

Some farmers (who don’t have marketing plans) asked me recently what I would do if I were them. Most are shocked when I suggest forgetting about their 2014 crop, and instead focus on 2015 and 2016. Farmers can still get premiums in the market if they shift their focus more long-term. The 2014 crop has no real story left, and by continuing to ONLY focus on it they are giving away profits and potential on 2015 and beyond. Too many farmers focus short-term without looking forward. Savvy farmers are planning years in advance.



Informa reported more bean acres than the USDA. If true, with good growing conditions, the downside to beans could be significant. Similar to corn, a rally is unlikely as weather conditions continue to be favorable.


Are you watching the bids around the country?

Last week several clients had the opportunity to sell grain PICKED UP on their farm for the same price a local ethanol plant (20 miles away) was bidding for delivered. Basically a facility over 100 miles away was so desperate for corn they were willing to pick up my clients’ corn for a nice premium.

Within that 100 miles there are also three ethanol plants, several shuttle loaders, a large commercial feed yard and a couple feed mills. All of these locations were 5 to 20 cents less than the price my clients received. Since my clients were already planning to take advantage of the increased basis levels, the premium was important.

As mentioned previously it is important farmers pay attention to the three big facets of grain marketing: futures, basis and market carry. Farmers who carry their own hedge can get so many more opportunities. This week, my clients received a premium by being able to choose the location with the highest bid. My clients hadn’t used this location in the past (and they may not use it again), but by having their bushels hedged in their own accounts, they could take advantage of a five-cent premium.


Saving money = making money

With grain prices so low, there is so much talk about saving money this year. Farmers are looking for ways to trim the bottom line. While saving money is great, some ideas I’ve heard seem counterproductive. One idea I heard recently was to cut fertilizer overall by 10%. Now, if the farmer has thoroughly analyzed his fields to show where nitrogen levels could be adjusted/reduced, that’s one thing. But, a blanket reduction in fertilizer by 10% to save money (which is what they were suggesting) is reckless.

I’m always surprised by the farmers that bristle about working for an extra 5 cents (like the example above). That 5 cents per bushel is $8 per acre in savings (assuming 165 per bushel per acre). Assuming production inputs at $400 per acre, this small tweak in marketing strategy is like a 2% savings.

Farmers need to be diligent at ALL times and in ALL aspects to maintain profitability in leaner times. Savvy farmers are evaluating every expense for its return on investment (ROI) and squeezing every penny out of their marketing strategy. The most profitable and successful farmers know that every 5 cents matters in their marketing program.

on grew up raising corn and soybeans on a farm near Beatrice, NE.  Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 18 years, building relationships with end-users in the process.  After successfully marketing his father’s grain and getting his MBA, 10 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits.  A big believer in farmer education of futures trading, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations.

 Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons.  All of these investment products are leveraged, and you can lose more than your initial deposit.  Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction.  The information provided here should not be relied upon as a substitute for independent research before making your investment decisions.  Superior Feed Ingredients, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs.  All investors should obtain advice based on their unique situation before making any investment decision.  The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative.  The sources for the information and any opinions in this communication are believed to be reliable, but Superior Feed Ingredients, LLC does not warrant or guarantee the accuracy of such information or opinions.  Superior Feed Ingredients, LLC and its principals and employees may take positions different from any positions described in this communication. Past results are not necessarily indicative of future results. He can be contacted at


Check Also

Ag lender survey reveals concerns

By Mike Estadt, Ag/NR Educator, Pickaway County and Chris Zoller, Ag/NR Educator, Tuscarawas County The American Bankers …


  1. Once you begin searching for allow you tto suddenly find your email is inundatfed with promotions encouraging you to spend money
    new. It is fokolhardy to go into business if you know nothing about that business.
    It does not matter should you be running a small company or perhaps a big multinational company; yur company ethics
    is very important andd can be a quality that most customers look for.

  2. Collecting xtra documents require a little in the applicant.
    But, the candidates looking for overseas jobs will not
    be capable of successfully accomplish this task. These everyone is experienced and educated inside their feld and know a
    llot better than anyone how to deal with any electrical related

  3. Growth withiun emerging markets in Asia, Latin America, Easten Europe, Middle East and Africa will enable many consumers during these countries to
    sign upp the emerging middle class and definately will heighten their interest in various cosmetic products.
    This alllows easy use oof the nail paint, and preventss the painmt from spreading to other
    nails or skin across the nails. So pick the best form of expert annd you can be feel comfortable knowing that you hair stays
    long and healthy.

  4. Create a complementing skills based team in a way that various HR
    aspects can be adedressed there are varied competencies
    and skills the team must be handle the complete gamut of HR responsibilities which range from HR design to HR delivery.

    Thhe main objective of CCP iis usually tto ennd up
    with prosppects into Weallth Masters so that you ccan recedive further commissions.
    Once they acknowledge how you feel the task entails
    use a one onn onne meeting hence the task letter could be signed in dupliocate copies sso each party kmows exactly whatt
    you happen to be contracted to accomplish for yyour year.

  5. In this career, you can become an auditor, a monitoring professional, a financial police officer, an expert, as well as as a
    tax accounting professional.

  6. I love looking through an article that can make men and women think.Also, thank you foor allowing me to comment!

  7. Admiring the persistence you put into your site and
    detailed information you provide. It’s awesome to come across a blog every
    once in a while that isn’t the same out of date rehashed information. Wonderful read!
    I’ve saved your site and I’m adding your RSS feeds to my Google account.

  8. That’s time that could be spent generating hoke based business, recruiting staff,or other things
    that are youu hasve to fit into your busy day. So they made it
    to the moon, they did what many thought could not be done.
    But I contend how the approach to riches and opportunity and blessing (as well as any other positive adjective yoou insert) is by developing and implementing
    a giving attitude.

  9. So many businesses aand leaders decide to live aand arre employed inn isolation and so many SME businesses are also going bust every year.

    A candid business assessment and fresh straegies based on your
    brand-new realities will assist you to and your team to regasin the right focus.
    Be accountable to another person, whether this is the colleague, friend
    oor coach.

  10. (on the beer)Takee some time now and answer these
    questions:- What do you do. Video technology appears to trend a lot more on the web now, just like
    integration of camewras and high quality monitors, it’s definitely
    not surprising automobile so much cheaper than 10 years ago,
    it is because of the impact of our own economical climate.
    This is where many on-line marketers slip, they are not able to research,
    this is sometimes a costly in time and expense –
    never mind self-esteem.

  11. The Bologna University was the model university which severed as
    medieval during those days. This preparation is the same as what leaders do in order to
    plan their business. There is no limit towards the level of success you could create by effectively operating our what are named as
    own online business.

  12. Hi there to every body, it’s my first go to see of this weblog; this blog includes awesome and
    in fact fine data designed for visitors.

  13. Yes! Finally something about UK schools.

  14. Have you ever poured your core into something that you were
    really deeply passionate about. Using this simple
    system start too know your own personal essence and unique style.
    This iss really a common mistake many potential businesspeople make, therefore itt may quickly kill even the best of ideas.

  15. Nowadays, intercultural communication diffichlties have grown to bbe a resource of misunderstanding operational relations in our multicultural wortld society.

    Eventually their days fipl with clients, suppliers, and business associates.

    Be professional – Join your industry’s professional or trade association.

  16. This clothing item it’s essentially a one-piece fabric
    made into a fancy dress that may fit babies of countless
    sizes. It pays to concentrate on the green movement sine
    it moved beyond just simple recycling; it is now the main baby product market.
    Naturally, they wikll do the thing that makes you cheerful
    to encourage one to continue to purchase from them.

  17. Nice post. I used to be checking continuously this blog and
    I am impressed! Very useful info specially the last phase :
    ) I care for such info a lot. I used to be looking for this certain information for a long time.
    Thank you and best of luck.

  18. There will be a great deal of such options inside site and you’re simply absolve to choose, in order
    that it will probably be cognizant of go for the tour. In women’s
    high heel sandals, it’s pretty difficult to balance yokur whole weikght
    around the balls of your respective feet as wel as
    the side of the shoe. Medical experts think
    that when scouting for Asics jogging sgoes women you must
    know your sslection of shoes for your particular workout routine have varying impact on you and being able to select the proper form of
    shoes will negate this impact.

  19. What’s Taking place i’m new to this, I stumbled upon this I’ve discovered It absolutely helpful and it has aided me out
    loads. I’m hoping to give a contribution & aid different
    customers like its aided me. Good job.

  20. Don’t be caught with a lot more debt on your handrs frdom poor standby
    time with the financials rolling in. Then when the group
    gets together, those that are performing well in a few areas explain how and why they’re able to perform during this
    level. Usually when all snacks conquer, students
    use thhe food store to get something totally nnew and freh each and every time except Keeley and Erika.

  21. It’s an amazing article designed for all the internet people;
    they will take advantage from it I am sure.

  22. hello!,I really like your writing so so much!
    proportion we keep in touch more approximately your post on AOL?
    I require an expert on this house to unravel my problem.
    Maybe that’s you! Taking a look ahead to see you.

  23. It’s a shame you don’t have a donate button!I’d definitely donate to this brilliant
    blog! I suppose for now i’ll settle for bookmarking and
    adding your RSS feed to my Google account. I look forward tto
    new updates and will talk about this blog with my Facebook group.
    Chat soon!

  24. It’s difficult to find knowledgeable people about this topic,
    but you seem like you know what you’re talking about! Thanks

  25. Hi friends, its fantastic article about teachingand completely defined, keep it up
    all the time.

  26. At this moment I am going away to do my breakfast, after having my breakfast coming over again to read other news.

  27. Coba cari celah di dalam permainan bandarq ini.

  28. It’s an awesome article for all the internet people; they will obtain benefit from it I
    am sure.

  29. Hi it’s me, I am also visiting this web page on a regular
    basis, this web page is truly pleasant and the people are really sharing nice thoughts.

  30. Excellent web site. A lot of helpful information here.
    I’m sending it to a few friends ans additionally sharing in delicious.
    And obviously, thank you for your sweat!

  31. I do not know whether it’s just me or if everyone else encountering problems with your website.
    It looks like some of the written text in your content are
    running off the screen. Can someone else please
    provide feedback and let me know if this is happening to them
    as well? This may be a issue with my internet
    browser because I’ve had this happen previously. Cheers

  32. You really make it seem really easy along with your
    presentation but I in finding this matter to be actually something
    which I believe I might by no means understand. It seems too
    complicated and extremely large for me. I’m having a look ahead on your subsequent submit, I’ll attempt
    to get the cling of it!

  33. For newest information you have to go to see the
    web and on the web I found this web page as a best site for newest updates.

  34. This is a really good tip especially to those new to the blogosphere.
    Short but very accurate information… Thanks for sharing this one.
    A must read article!

  35. I blog quite often and I truly thank you for your information. This article
    has really peaked my interest. I am going to bookmark your blog and
    keep checking for new details about once a week. I opted in for your RSS feed as

  36. It’s really a nice and helpful piece of info. I am happy that
    you shared this helpful information with us.

    Please stay us informed like this. Thanks for sharing.

  37. One of the wonderful post! Great article cheers for these guys to share awesome post………

    For more information visit now :-

  38. For latest information you have to pay a visit the web and on internet I found this web site as a finest website for most recent updates.

Leave a Reply

Your email address will not be published. Required fields are marked *