Note: This information is intended solely as a general guide
and is not
intended to reflect or predict actual costs of any one particular farming
operation.
Step 1 - Project Your Acres and Average Yields
| Crop |
Acres |
Yield/Acre |
Bushels to Sell |
| Corn |
500 |
180 |
90,000 |
| Soybeans |
500 |
55 |
27,500 |
Step 2 - Figure Your Costs Per Acre
| Crop |
Cost / Acre |
| Corn |
$750 |
| Soybeans |
$500 |
Step 3 - Set A Profit Goal
| Crop |
Profit / Acre |
| Corn |
$200 |
| Soybeans |
$125 |
Step 4 - Figure Your Target Price
| Crop |
Cost / Acre |
+ Profit / Acre |
÷ Yield / Acre |
= Target Price |
| Corn |
$750 |
$200 |
180 |
$5.28 |
| Soybeans |
$500 |
$125 |
55 |
$11.36 |
Step 5 - Choose A Marketing Alternative
That Fits The Current Situation
|
If the current price is below your target price, enter Target Contracts; if your price
is not reached by harvest, sell to avoid additional costs and risk and use Minimum Price
to stay in the market.
If the current price is at or above your target price, lock it in with a Forward
Contract. |
|
