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ARC-PLC
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Von WC Ohio
Posted 1/29/2015 08:48 (#4346761 - in reply to #4346725)
Subject: RE: ARC-PLC



 

Following scenarios are only for "here" running my numbers and various online tools.

I doubt it will apply anywhere else. 

The opinions seems to be to maximize corn acres first then wheat then beans if you can reallocate them that way. 

 

PLC wins for wheat across high, medium, low price scenarios in the Farm Doc tool.

ARC Co wins for beans across all 3 pricing ranges.

ARC Co wins for Corn on medium and high price ranges but sometimes on the low range PLC begins to win on corn by a few dollars per acre.  

This is where my greatest concern lies. If the dollar continues to remain high and our exports suffer as they become more expensive, unknown monetary and fiscal policies that could easily wreck any sound decision, if ethanol mandate is challenged and suspended. Very low corn prices could happen then PLC becomes much better and is not subject to the 10% cap on benchmark revenue.

Leaning towards all Wheat as PLC

All Beans Arc Co

Most Corn Arc Co

 

Maybe a contrary play hedge the bet take 1 farm and do corn as PLC but which farm would be better suited to PLC ?

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