When was the last time you played darts? OK, when was the last time you played darts blindfolded? The second game is a little more challenging because you may have no idea where your target is. But it’s a lot like the game some farmers play of trying to sell their crops into a market rally without knowing where profit resides for their operation. It’s difficult to know when to pull the trigger during the growing season if you don’t know where you will be able to profit.
I’ve heard some bankers say 80% of the farmers they work with don’t have a solid cost of production or a marketing plan. So if you’re ready to go with that, you’re in the minority.
In a recent webinar offered by Penton Agriculture, Purdue University Professor of Agricultural Economics, Michael Boehlje asked attendees about their cost of production for the upcoming growing [ … ]