Ag Marketing
Typically, farmers spend 98% of their effort and time growing their grain and oilseeds, and only 2% actively marketing and selling it. That split in time and effort is not necessarily a bad thing - as long as producers are smart and vigilant about when they undertake that marketing effort. The problem comes when growers consider marketing a chore and an afterthought, as in our opinion that mindset is a recipe for leaving money on the table, if not outright heartache.
Why go through all the hard work of planting and raising a valuable crop if you’re not going to make sure it’s sold at the best possible price? 
Many producers will no doubt claim they subscribe to that philosophy as well, but in fact do the opposite season after season when they commit to big investments in crop inputs but leave the sale price of their grain open until they finally get around to marketing it.
By following the simple steps below, and using our Ag Marketing And Merchandising Optimizer (‘AMMO’) Program tool to keep track of all your sales and positions, grain marketing can be transformed from an errand to be dreaded into an opportunity to be relished.
Work through our simple breakeven worksheets (below) to get a better handle on what your costs are per acre for the main crops you grow. A clearer understanding of your actual breakeven costs is a key starting point when establishing a marketing plan. Once you know at what prices you start making profits, creating a plan designed to capture those profits becomes easier. 
Markets for all commodities are becoming increasingly volatile as rising global populations, improving diets, rapid industrial growth in developing nations and greater investor interest in raw materials all impact the commodities sector. But each market has its own unique fundamental balance sheet comprising key supply, demand and inventory data. Prices respond very quickly to changes in these categories, so keeping up to speed on developments here is vital for any producer looking to take advantage of any attractive price moves while protecting themselves against adverse moves.
At EHedger, our dedicated research team does all the analysis for you, and keeps you up to date via brief email notes, our morning hotline voice alert, special reports, webinars and more. Having the right information at the right time is key, and we use our deep in-house analytical experience and envied network of trading partners and associates to stay a step ahead of the market - and ensure EHedger customers possess all the key information they need.
Having established your breakeven levels and become aware of the main price outlooks for the relevant markets, the next step is to map out a marketing plan that centers on your operation’s unique breakeven levels and production history, and features clear price targets at which you will commit to selling grain. These targets can (and will) be adjusted over the year in response to changes in the marketplace, but are an important first step in mobilizing your grain and getting your marketing plan into action.
The key to a strong Ag Marketing Plan is to utilize all the tools available in the optimal mix that allows for flexibility during favorable price moves and yet still offers solid protection against weaker prices. Every plan should be tailored to each operation, and should incorporate a blend of cash sales and futures and options positions that allow the producer maximum profit potential and protection.
Timing is obviously key, but so is taking a ‘total’ approach to your hedging and marketing plans – meaning that farmers must take into consideration the costs of inputs such as fertilizer as well as the sale price of their grain when they put their plan together. By actively managing all the risks facing today’s growers, producers put themselves in the position to rightfully spend a majority of their time and effort on growing their crops and improving their operation, and less time worrying about on how much and when to sell.
It is often tempting to get distracted by unexpected developments such as weather worries, demand hiccups or investor appetites, but at such times those producers who are able to put things into perspective are better able to see opportunities emerge and outperform more jittery growers.
Growing and marketing grain consistently well year after year takes discipline, hard work and a clear understanding of what’s important. Our customers have all three of those attributes and as a result have thriving operations that are primed for profitable growth.
