Since our last post, we have seen Dec 24 corn have a range of 4.71 to 4.96 and down, as of this writing, to 4.81. From a revenue per acre point of view at say a 190 APH your revenue has fluctuated from 894.90 to 942.40 per acre. This would seem volatile and maybe even troubling.
But the question always becomes, now what?
When this happens with Minnesota grain revenue management often the question is should I sell some crop here and how much? If you were to ask us that question, my first answer would be “beats me”. Then my question back to you would be, what type of return would you like to see at harvest? Are you looking to breakeven, make 5% over anticipated expenses, or more?
This is where managing grain revenue goes beyond grain marketing.
Our process in managing grain revenue begins with estimating your current potential revenue by crop. You basically provided much of this information to your crop insurance agent already. All we need to begin generating our reports is your crop breakdown, APH, and acres anticipated to be planted. Just with this information we will provide you with your estimated revenue based on current market pricing. Then we also shock out this revenue over a range of prices showing changes in your revenue based on market price movement. We then boil it down to one question: Here is your revenue today. Should prices fall, at what level of revenue will things get rough for you financially? This then becomes our “line in the sand” to assist in you in defending against adverse revenue outcomes.
Your line in the sand.
If you would like to get your “line in the sand”, all you need to do is fill out our questionnaire at www.heartlandcom.com/home/heartland-revenue-management-questionnaire/
With this information we will run an initial free line in the sand report. If you want more information after that, we would welcome the opportunity to work with you on just not marketing, but managing your revenue. Our goal for each client is to become your partner in managing your revenue stream. When you really look at it, your Minnesota grain revenue management has more impact in managing your profitability than any other professional partner including insurance agents, CPA’s, and bankers. Market appears vulnerable today, let us help you build a revenue floor.