Posted 1/12/2021 23:23 (#8746885 - in reply to #8746853) Subject: RE: I’m confused. Are we rich or poor?
I valued all my corn in the many piles at $4.
This fall when corn was 350 I made a decision to make feed out of it and sell it to my own feedlot at $4. All my feed is in fermented piles, silage, earlage, hmc. If I run out and have to take corn out of the bin then that will be priced accordingly to spot market.
But as soon as the chopper pulls in the field the marketability of that corn is pretty much stuck to feeding it.
I bought a lot of calves this fall that I penciled with $4 corn because that's what my feedlot bought it from my farm for.
I guess I look at it this way, my farming operation sold 1/4 of the corn to my feedlot for $4, half of my corn crop will be sold between 4.55-5.05 to the elevator. The remaining 1/4 will be sold sometime this summer either to the feedlot or the elevator for the spot market at the time. I spread my marketing out this way. Lot of years selling to the feedlot is the highest price recieved, this year it won't turn out like that