Rising crop prices offer plenty of opportunities, and we wanted to know what Farm Progress PANEL members were thinking. With corn topping $7 and soybeans double where they were just a year ago, what is the marketing strategy.
A good outward sign of market optimism, and action, is the crop pricing strategy for the farm. We asked the following: With the latest market numbers what percent of your 2021 crop is already priced?
You may not be surprised to read that one-third of respondents haven't priced any of the crop and responded that they were "waiting for more news." That may change if prices stay steady, or if they dip a bit that may force those respondents to pull the trigger.
Just under 30% of respondents report pricing 10 to 25% of their crop, so they're working to lock in some of those prices for the crop. There are different schools of thought here, but knowing you can at least get a quarter of your average crop harvested, even in significant drought, this level of pricing may make sense. There others that price more.
Just under one-quarter or respondents have priced between 26% and 50% of their 2021 crop, again showing their confidence in having the crop despite weather challenges.
Just over one-tenth of producers have priced more than 50%, given prices these days, that may not be a surprise. These producers are confident they'll be able to deliver into the market as needed.
We did ask if someone had priced all of 2021 and a portion of 2022 and 4% of PANEL members responded they had. These producers have a plan.
That final question is also about everyone looking at crop prices not only for this year but for the future, and there are pricing opportunities that may help you lock in higher returns for the next few years. It's worth discussing with your market adviser.
Thanks to everyone who responded to these PANEL questions.
Be a part of the PANEL
The Farm Progress PANEL is your chance to share your thoughts on key issues. To take part, start by signing up for our daily mobile text service Farm Progress NOW. Just text FARM to 20505, then respond to the text you get back. Later in one of our daily texts we'll provide information about how to sign up for the PANEL. And thanks to the respondents for helping us out.