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Holland, Indiana (SW IN) | Just ran all our crop budgets for 2017 crops (first time, this year) must admit I am somewhat in shock and still need to go over them to make sure no big mistakes.
BUT my brother-partner and I have just penciled in 75% soybeans and 25% corn --for the record 2011 and 2012 we put out no beans just didn't think we could make any $ on them we have quite a bit of irrigated land --- the last 4 years we have been increasing bean % each year-- better yields than we could ever believe. (Irrigated or not)--- but we throw a lot of $ at our crops, so better get good yields. We feel much more comfortable planting beans early with Illevo, seed treatment, and mostly pattern drained--- IMO early planting = better yields. Also with fungicide (possibly 2X) not too afraid of beans after beans. --will give up some yield.
If prices stay where the are for the Feb. price average (spring price)-- 80% EU on beans most of our APH on beans are in the 70's beans are very attractive. I like guarantees very seldom have guarantees in farming. Cost of CI appears like it will be pretty reasonable.
To my question I love the price increases had about 12% of our beans priced on a HTA --with our usually good basis $10+-- but if we put out 75% beans only 7% sold.---sure we will HTA more.
If doing this can still switch to corn if prices so warrant BUT thinking about options if I looked right Nov$10 put 55 cents ---Nov$11 puts--- $1.16 area (thinly traded) The way I look at it spend 1.16--- guarantee board 9.80 after cost = $10 Jan. 2018 del. (yep we usually have great basis)
What does NAT think? Or any SB marketing advice? leave out the options?
Please no arguments about the merits of CI or any other morality--- I don't make the rules, I just learn the rules and use any thing legal at my disposal to make $
Sorry about the long post --THANK NAT--- Love all the good advice---Dan
Edited by Dan Loehr 1/20/2017 11:58
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need SB option advice
