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A structured approach to selling can deliver
consistent results.
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What’s your grain marketing style? How comfortable are you with risk? Can you deal with a costly setback? As Jessica Barham explains, today’s market volatility can punish those with too much emotion in their selling game. The stakes are higher than ever.
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“Five or 10 years ago, you’d be disappointed if you lost out on 25 cents per bushel due to a market swing,” says Barham, Teulon, Manitoba-based Market Coach with Backswath Management. “Today, with a crop like canola, a miss could be $5 per bushel.”
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As Barham works with farmers, she points to three vital considerations for grain marketing.
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Your crops. What is your cost of production, and your longer-term yield average? As the growing season progresses, do your expected yields align with your goals and obligations?
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Your cash flow. At which points in the year do you need cash to pay bills?
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Your grain in storage. Based on what’s in your bins now and your current crop outlook, when and how much do you need to sell to make room?
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As Barham sees it, planning brings rigor to the process and helps avoid emotional, spur-of-the-moment selling.
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“Market movements are out of our control and impossible to out-guess,” she says. “Knowing your breakeven costs and making decisions based on Return on Investment is so powerful. If you’re achieving your goal for Return on Investment, you can sell with peace of mind.”
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Looking for ideas your farm can use? We’re here to help.
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