It’s not harvest yet. Don’t get alarmed. I was just reading about Poet harvesting some stover and corn cobs down in Texas, and it got me excited. Now I’m thinking about how much corn there is going to be coming off the Blank Slate in October.
We’ve been selling small chunks of our 2010 corn crop and even marketing some of the 2011 corn crop for our farm recently. July and August 2011 have offered some pretty nice pricing opportunities recently. We have chunks sold for earlier months already. Talking to one of the ethanol plants we sold corn to and they mentioned that for next summer they already have purchased half the corn they need. That tells me many of you are thinking the same way I am. It’s a pretty good price level and worth locking in a percentage of the crop.
Growing up, my dad always said to think about this. When you’re selling something and there’s a willing buyer, you have to consider that the buyer may know more than you do. You have to think about why they are willing to buy at this price before you agree to sell.
Dad’s right about that. The corn buyers could have information that the crop is less than we expect or the demand will be even higher. Maybe corn will go considerably higher. My thought at $3.70 to $4.00 corn is that we can be profitable on the farm at those levels. Sure, it’s not my dream price of $5/bushel. That’s why I don’t want to sell the whole crop. If I can get 170 bushel corn (could be a little optimistic considering some drownouts and 20 cow/calf pairs)and get $3.70+ for it, that’s about $630 gross revenue per acre. That would far surpass my expectations for Year 1.
Is it the Wensman corn, the Agro-Culture Liquid Fertilizer, the weather, good management, or just God’s grace? I think it’s a little of all of the above, and wondering what to do with all this corn should be a nice problem to have.