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Ag economist stresses importance of good grain marketing plans

A University of Nebraska Extension ag economist says farmers should consider price and date triggers when developing a good grain marketing plan.

Jessica Groskopf tells Brownfield it’s important to set realistic expectations based on market trends.

“Sometimes it’s, you know, gosh, I just need 10 cents more and the market may or may not give it to us. So by having a plan in place that has both date and price triggers, we can go ahead and make sure that we’re making those sales throughout the year and battling those emotions,” she says.

Groskopf says farmers need to be mindful of how much grain is in storage and shouldn’t wait too long to sell.

“We could cash sell grain now. If we think that the market’s going to continue, why are we continuing to pay that storage? We could also look at something like joining a basis contract with a short hedge, or joining a basis contract with a put option, depending on where we think the basis market will move,” she says.

Groskopf says having a written plan can help farmers keep the emotions out of grain marketing.

AUDIO: Jessica Groskopf, University of Nebraska Extension