In this week’s blog, I want to stress the importance of knowing your breakeven and updating it throughout the growing season. This might sound simple, but it’s about knowing your operation and what it takes to grow the crop. I have been asking producers the past couple weeks, how has your production changed since putting the seed in the ground? Most would agree production has gone up from original thoughts, mostly from dryland being off to a great start. So what does that do to breakeven? Did you think you were 50% sold and now maybe you are only 40 – 45% sold? Have you only had to irrigate a few times? These are a couple examples that have a big impact on your bottom line.
It’s tough to not get bulled up here on this recent weather rally, when we hear about all the flooded and drowned out acres out in the Eastern Corn Belt, but from what we hear the trade is starting to write those acres off and focus on better weather and a good Western Corn Belt crop. So I circle back to the questions, has your production changed? If so have you rewarded this weather rally? A contract I like in this environment is anything with a floor that gives you some upside but protects the bottom. If you would like help going over any contract ideas or setting up a breakeven, please contract a Risk Management Consultant or ProEdge Specialist in your area.
As of 7/19/15, 69% of corn was rated good to excellent vs. 76% last year at this time. Corn silking at 55% down 1 % vs. the five-year average. Soybeans were unchanged for the week at 62% good to excellent. 56% of beans at the blooming stage, and 17% setting pods that are right at the five-year average.