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NC Kansas | I'm a lender and as lenders we have to be careful not to "make" marketing decisions for our customers. That can be a bad thing. When asked for advice I generally just encourage my customers to have a plan. Know your breakeven and go from there. It's kind of alarming how many don't know that simple number on a per acre basis. I'm also a producer. I keep decent notes and write down my forward sales from each year... going back to 2016 I can sell corn today for higher than I've sold corn for in the past 3 years... That alone should tell me something. I'd love to get $4.00-$4.25 cash but I'll take $3.60 when I look back and realize I let some go for $2.70 just a couple years ago.
I will never instruct a customer to sell, but I will point out things like this to get them thinking.
Where we often run into trouble is guys that want to store their grain forever hoping for a market rally. The storage (if off farm) rolls up, the interest rolls up. Loan payments need made and that's when bad decisions happen and they are "forced" to sell due to circumstances they could have avoided 6 months ago. then the banker gets blamed when the producer really just had no plan, other than to cross their fingers. | |
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How closely does your lender watch marketing decisions?
