Because farmers need one more thing to do during harvest, this episode of Ag Marketing IQ In Depth is their reminder to keep marketing.
Marketing crops while working the long days isn’t optional — it’s essential.
“Marketing is how you get paid for all of your hard work and dedication,” said Total Farm Marketing’s Naomi Blohm on this week’s episode.
With grain prices currently holding onto third-quarter gains, opportunities exist that haven’t been available for several years. Here are five tips to help farmers capture price rallies as harvest ramps up.
1. Review and reassess. Blohm recommends taking time now to review all committed cash contracts and closely scout fields to estimate expected harvested bushels. “You might find that your crop is either more than what you anticipated or less than what you anticipated, so you need to have a realistic idea of what you’re working with,” she said. An accurate picture of expected yields helps farmers market more effectively.
2. Automate sales. Rather than monitoring markets constantly, farmers can set cash targets with grain elevators or traders. “Sometimes those big market rallies can happen in the middle of the night, or they can just bump up briefly off of a headline,” Blohm noted. Preset sales orders ensure farmers capture favorable prices even when they’re focused on fieldwork.
3. Sign up for basis alerts. Text alerts for basis changes provide another automation tool. “That’s just another way to stay on top of your marketing that’s not just watching the Board of Trade prices but the legitimate happenings of your backyard,” she said.
4. Calculate storage economics. Farmers must evaluate storage costs — typically 7 to 8 cents monthly — against potential price appreciation. “If you’re thinking about storing it for seven months, now you’re asking the market to rally 50 cents just to break even,” Blohm said.
For those wanting market exposure without storage expenses, reownership strategies using call options offer participation in price rallies with limited risk. These tools provide “unlimited upside potential” while avoiding physical storage costs.
5. Recruit a marketing buddy. Blohm’s final tip: “Find an accountability buddy to just make sure that you are talking with someone about the markets and being mindful of those opportunities in front of you.”
To hear more from Blohm about marketing during harvest, tune into Ag Marketing IQ In Depth.