Posted 1/13/2021 08:44 (#8747495 - in reply to #8747467) Subject: RE: Anyone gearing up for multi-year sales?
20 Miles West of Indianapolis Indiana
McFarmer - 1/13/2021 08:34
Without locking in costs ? No way. Not on much of it anyway.
Why does that bother so many people? Not having cost locked in? If that’s the case you really don’t know you cost on a per bushel basis if you don’t know your yield. I suppose those who can harvest and bin all their crop and still pay for part of the next years inputs with cash can have a different plan then those who need to sell a major portion of their crop at harvest, or even early post harvest to pay bills and keep the home in order and fed?
Rent or land mortgage is most biggest single cost and i personally have 80% of my rents locked in 2+ years. With that being said I’m not worried about $1000 a ton anhydrous, or $400 a bag seed corn, or $100 a bag seed beans. Maybe I should be? If dry fertilizer goes through the roof many can go from 2 year spreads to 1 year or partial spreads. (I did that at one time and came out ahead on that deal, can’t remember if it was some time between 08-10?)