Why Low Grain Prices Lead To Higher Costs (And Why They Don’t Have To)
Some costs in business are unavoidable. Production Agriculture is no different. It seems like everyone is trying to take a piece from you at every...
High futures prices are offering an opportunity for growers and buyers of grain to achieve above average margins.
In order for that to happen, growers must sell high prices and elevators must drop their basis.
When elevators and farmers both make good money, the community benefits too. Win/Win/Win.
"Easier said than done, Phil." Maybe so. But you need to make margin to stay in business, you are providing the service of paying margin calls on short futures, you will be the one staying open long hours to handle these bushels, and it is not unreasonable to be compensated for that - especially when you are still paying a higher cash price than you have in many years.
You will be surprised at how little effect, if any, a lower basis has on your volume. Your competitors may be waiting for someone to take the lead on this.
Drop your bid, make more money, pay more to growers, and let the benefits come to everyone.
Some costs in business are unavoidable. Production Agriculture is no different. It seems like everyone is trying to take a piece from you at every...
The typical discussion that occurs with a farmer at the elevator or coffee shop centers a lot around price.