What's my cost of money? It seems that higher borrowing rates will continue into 2024. Using an 8% borrowing rate, holding grain until April will cost you $4,000 per $100,000 borrowed. On the other hand, a 6-month CD is paying approximately 5% or more, according to Bankrate. So, having cash on hand versus not equates to a $9,000 difference per $100,000.

Market carry. One of the market's functions is to incentivize storing grain during a surplus (carry) or pushing immediate grain movement during a shortage (Inverse). After several years of an inverted market, some carry is returning. As of the market close on August 7th, the Dec/May carry is around 22 cents. Storing grain in the bin and selling for May would result in a 22-cent gain. Considering an 8% interest over approximately 5 months, you're looking at around 0.033 cents per month in interest cost for storing until May, which is nearly breakeven. Basis will play a role in encouraging storage. When deciding between storing and moving this winter, calculate these numbers to determine a good basis number for your operation and whether storage makes sense.

Storage charges. Will you store at the elevator or on-farm storage? What are the storage charges and drying costs at your local elevator? If you have bin storage, what's the cost to dry and store? Does it make sense to use discounted drying deals, sell across the scale, and re-own with call options? Could a basis contract help avoid storage charges? I've posed several questions, but my advice is to assign a cents-per-bushel value to each decision, factor in the cost of money, and stress test each decision against various market movements. Make sure to discuss these ideas with your advisor and grain buyer.

Crop insurance. Depending on yield and crop insurance levels, you may receive an indemnity payment. As of the market close on August 7th, December Futures are around ~4.95. If you believe you're at or below your APH and have 85% coverage, you'll receive a payment if December futures remain below 5.03 (85% of the average of 5.91 in February). Talk to your tax advisor, as you may be able to defer payments.

Breakeven. This term is commonly used in our industry. Until everything is harvested and in the bin, any breakeven figure is merely a projection. However, you can still plan ahead by recognizing if you're undersold and how a 10-20% sale changes your breakeven.

2024 marketing. There's no reason you shouldn't formulate a plan for 2024, especially if you're locking in inputs in the upcoming months. Good risk management suggests that if we've taken a position in the market (via input costs), we should consider a position to mitigate the risk of lower prices.