What is your break-even for 2014?
As I talk with grain producers this winter, my focus on cost-of-production for 2014 crops has people giving me the stink eye. If I want to take home $58 per acre for family living – corn breakeven is just about $5.00 and soybeans are around $10.50.
Looking at market prices I see profits can be had today if I take advantage of my local cash bids for the 2014 harvest of soybeans. Corn is a little bit of a challenge to achieve my needed / desired contribution to family living costs. I don’t find any 2014 corn harvest bids that meet my breakeven level.
Following along with the 24 years of market data from the University of Minnesota we expect the time period between March and June to offer some of the better prices for the year. We expect the current rally could continue for a month or two. However, remember the price peak of 2013 was in March.
No one can predict the future. Maybe we have not yet priced much for 2014. The current rally is giving us a nice price bump. Maybe it’s about time to do something? I consul folks to take profits when they can. Marketing a load or two at a time gives us the opportunity to participate in market moves should they occur, and also gives us increased revenue protection as we get bushels committed.
- What are your breakeven numbers?
- What price are you waiting for?
Here is a brief review of 2014 risk management and crop insurance products.
Source : psu.edu