There’s not a lot of excitement in the markets right now but there are still a lot of tough marketing decisions ahead.
Corn and soybean prices remain under pressure, even as soybeans have seen a modest rally in the last 45 days. With planting season in full swing and most 2025 input costs already locked in, many farmers now face a familiar dilemma: Should I wait for better prices? Or take steps to protect what I already invested?
It’s tempting to wait. To hope. To think: “Let’s see what the summer brings.” But in today’s high-interest rate environment — and with trade uncertainty back in the headlines — waiting could cost more than you think.
Interest rates: silent killers
Raising a crop isn’t cheap anymore. Holding unsold grain — or waiting to price what’s still in the bins — now comes with a significant cost. Even if you’re not paying for commercial storage, you’re paying in opportunity cost. That cash tied up in unsold bushels could be working elsewhere — reducing debt, covering inputs or strengthening your cash flow ahead of harvest.
With most 2025 expenses already sunk in the ground, many farmers are effectively “long” the market. That means every drop in price chips away at potential profit. Without a plan in place, that risk grows by the day.
Risk protection: essential
Think of a put option like crop insurance for prices. You’re locking in a worst-case scenario — a floor under the market — while still leaving the top wide open. If the market rallies, you ride the wave. If it tanks, you’re covered.
With your seed in the ground and your budget mostly spent, it’s time to protect your investment.
A well-placed put gives you breathing room. It takes the pressure off every forecast and every USDA report. And in a year like this — with elevated interest rates, thinner margins, and global volatility — that peace of mind is worth more than ever.
You don’t have to bet the farm. Start with a portion of your expected production. Anything is better than sitting on the sidelines, but I recommend covering up to your actual production history. Lock in protection, then let the market come to you.
Trade policy: fuel to the fire
President Trump’s administration recently announced a 90-day pause on new tariffs, but uncertainty still hangs in the air. With China and other trading partners watching closely, any policy shift could disrupt export flows, especially for soybeans. And when exports slow, basis weakens and the whole pricing structure can quickly collapse.
That’s why locking in downside protection now — before global headlines rewrite the story — is a smart move, not a desperate one.
Preparation: profit protection
Markets don’t reward hesitation — they reward preparation. Whether you’re still holding on to last year’s crop or looking for opportunity on 2026 bushels, now is the time to get your plan in place. Consult a trusted advisor, evaluate your break-evens, and protect your profits while you still can.
Because hope isn’t a marketing plan. Protection, however, is.
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