The low grain prices the last few years have negatively impacted net farm income and created several marketing challenges for grain producers. University of Minnesota Extension Agricultural Business Management Educator Don Nitchie says with the recent rally in corn and soybean prices there is a better opportunity for farmers to make money as long as they take advantage of this price move. However, he says its important producers focus more on margin, not on price when making decisions.
He says producers should have some type of marketing plan in place, with reasonable profit margins.
Nitchie says if a producer has a marketing plan in place, he or she is less likely to make emotional or spur of the moment decisions which could be costly in the long run.
Nitchie says a producer’s margin is the difference between the cost of production and the selling price and it’s important for each farmer to know their break even costs.
