Check Farm Income Projections Carefully
Consider rolling fixed basis contracts to futures only, if you may be oversold on 2012 crops.
Published: Jul 10, 2012
Now is the time to be talking to your elevator if you’re concerned about whether you’ll grow enough this summer to fulfill existing contracts. Basis is still relatively weak for new crop but could strengthen again like it did for 2011, creating a double whammy, because crop insurance is based on the futures price. Farm Futures Senior Editor Bryce Knorr talks markets with Pam Jahnke, farm director, Wisconsin Farm Report.
You can listen to their conversation by clicking on the audio link on this page.
Senior Editor Bryce Knorr first joined Farm Futures Magazine in 1987. In addition to analyzing and writing about the commodity markets, he is a former futures introducing broker and is a registered Commodity Trading Advisor. He conducts Farm Futures exclusive surveys on acreage, production and management issues and is one of the analysts regularly contracted by business wire services before major USDA crop reports. Besides the Morning Call on www.FarmFutures.com he writes weekly reviews for corn, soybeans, and wheat that include selling price targets, charts and seasonal trends. His other weekly reviews on basis, energy, fertilizer and financial markets and feature price forecasts for key crop inputs. A journalist with 38 years of experience, he received the Master Writers Award from the American Agricultural Editors Association.
MARKET PLANNING: Consider rolling fixed basis contracts to futures only, if you may be oversold on 2012 crops.Pam Jahnke is Farm Director of the Wisconsin Farm Report that is carried on 16 stations in Wisconsin. Known as the "Fabulous Farm Babe" Pam studied broadcast journalism and broad area agriculture at the University of Wisconsin - River Falls. After college, Pam moved into her chosen field, doing farm broadcasting, radio and television, from Green Bay to Eau Claire, WI - and she's never looked back. Pam often says she feels like farm broadcasting and communicating on behalf of food producers is exactly what she was made for. Pam has been named "Friend of Agriculture" by the Wisconsin Department of Agriculture for her assistance in raising awareness of the "Harvest of Hope" program. She has also served as president of the National Association of Farm Broadcasting.
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Tagged: usda, department of agriculture, crop insurance, wisconsin department of agriculture