Rearview Mirror

by Greg Mockenhaupt

by Greg Mockenhaupt

As a producer, it is easy to look in the rear view mirror and say “I wish I would have.”  Keeping in mind, you did the best you could with the information you had at the time; your decisions were likely sound.  The market gave us some opportunities by way of a rally and shortly after took back the gift.  Without a crystal ball, no one could know the market direction or when the rally would end.  Fundamentally the market was not supportive, and as a rule, fundamentals will eventually take back the reins.  Since the market seems very volatile, I thought it best to talk some marketing principles guaranteed not to fail you. 

The Fundamentals of Marketing

  • Know your break-evens and make profitable sales
  • Sell your crop in percentages
  • Use seasonal targets; they are less emotional than at-the-moment sales
  • Be consistent, selling the same percentages pre-harvest each and every year
  • Diversify and spread out your risk, selling incrementally and with different types of contracts.
  • Think big picture and do not get hung up on one sale either good or bad.  Simply look at total dollars generated (Average).

Sound risk management techniques are a must with the type of market volatility we have been seeing.  It can be the difference between making a profit, or losing money.