Lower Grain Markets Call For Careful Marketing Approach By Producers

By Harold Walker
The saying ‘what a difference a year makes’ certainly applies to grain markets and the strategies employed to effectively market the grain you produce.

Production costs on August 1 exceed the pricing offered by grain buyers. Hopefully, a portion of your 2024 crop has been priced as the industry projections for harvest prices are below $4.00/bushel for corn. Soybeans have fared better but are still priced much lower than the past year.

This season has been a real challenge for most producers. This winter and early spring were abnormally dry for many producers. Then came the month of May. Low ponds were filled, planters were put back into the shed, the optimum planting dates were in the rearview mirror, the hay was still in the field, and we all wondered if we were going to get a crop in the ground. Farmers never give up, most of the crop did finally get planted.

The challenges before us are many, however, the dominant challenge is marketing the crop above the cost of production so our financial obligations can be met and funds be available to plant again next year. The cost of inputs, repairs, fuel, etc. are projected to increase by one to three percent. In August though, some fertilizer prices have fallen nearly four percent.

Markets are projecting a CBOT figure below $4.00 per bushel for corn. Diligence and constant monitoring of the markets will become more important. Your National Farmers Grain department makes available the daily Morning Review from US Commodities, by email, to our members. This contains valuable information concerning projections, options strategy, and other industry information. If you wish to receive the Morning Review please contact Theresa Seiler at 316-796-0606.

Organic grain producers are experiencing falling prices also. Your NForganics marketers, Mike Schulist and Gilbert Williams, have been diligent in locating markets and obtaining the best prices available for our organic producers. The reputation of NForganics marketing a quality product from our producers has significantly contributed to the development of new markets.
A new Farm Bill is being drafted in Congress that will affect all of us for the future. Contact your Senator and Representative with your concerns and encouragement to support all of agriculture. Of concern are loan prices established for all commodities and the continued support of the risk management programs.

Always remember, farmers and neighbors working together can achieve positive results as opposed to a lone voice in the chaos and complexity of the agricultural world of today.