1 / 16

June 2013

June 2013. Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790 sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management. Marketing Revenue Protection (RP) Guaranteed Bushels. Source: Johnson, ISU Extension, June 2013. Separate Bushels :

pancho
Télécharger la présentation

June 2013

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. June 2013 Steven D. Johnson Farm & Ag Business Management Specialist (515) 957-5790sdjohns@iastate.edu www.extension.iastate.edu/polk/farm-management

  2. Marketing Revenue Protection (RP) Guaranteed Bushels Source: Johnson, ISU Extension, June 2013

  3. Separate Bushels: Delivery vs. Non-Delivery • Revenue Protection = Insurance Bushels that can be committed to Delivery • Insurance Bushels = APH X Level of Coverage X Higher of Projected vs. Harvest Price (ie. acts like a subsidized Put Option) • Combine Insurance Bushelssold for Delivery along with the use of Futures and Options Strategies for Non-Delivery bushels. Source: Johnson, ISU Extension, June 2013

  4. Delivery of Corn Bushels with Revenue Protection (RP) • Marketing Strategy • Pre-Harvest Sell for Delivery up to 144 Bu/A • Price Guarantee is Higher of the Projected Price vs. Harvest Price • Slight Basis Risk • Must Plant the Crop • (Prevented Planting = 60%) Deductible 20% = 36 Bu/A RP @ 80% Level of Coverage 144 Bu/A Guarantee X $5.65/buProjected Price 180 Bu/A Actual Production History (APH) = $814/A Revenue Guarantee Source: Johnson, ISU Extension, March 2013

  5. Comparing 2013 Revenue GuaranteesAPH= 180 bu/A Corn, 50 bu/A SoybeansProjected Prices = $5.65/buCorn, $12.87/buSoybeans Source: Johnson, ISU Extension, March 2013

  6. Corn Revenue Protection @ 80%Final Yield: 100 bu/A vs. 200 bu/A YieldPrice: $5.65/bu Projected,$4.50/bu vs. $7.50/bu Harvest Pre-Harvest Sales 100 bu/A @ $5.30/bu Unpriced Bushels = Harvest Price - $.20/bu Basis $1,260 $960 $894 $860 Source: Johnson, ISU Extension, March 2013

  7. Corn Insurance Prices vs. Seasonal Highs Source: USDA Risk Management Agency & CME Group, Nov. 2012

  8. December Corn Futures Seasonals 2003-07 Average High $2.92 2008-12 Average High $5.90 Source: www.cmegroup.com, October 2012

  9. New Crop Corn Futures Chart Projected Price: February Average: $5.65/bu. Source: www.FuturesSource.com, June 5, 2013

  10. Soybean Revenue Protection @ 80%Final Yield: 30 bu/A vs. 60 bu/APrice: $12.87/bu Projected,$11/bu vs. $14/bu Harvest Pre-Harvest Sales30 bu/A @ $12.50/bu Unpriced Bushels = Harvest Price - $.50/bu Basis $780 $690 $560 $515 Source: Johnson, ISU Extension, March 2013

  11. Soybean Insurance Prices vs. Seasonal Highs Source: USDA Risk Management Agency & CME Group, Nov. 2012

  12. November Soybean Futures Seasonals 2008-12 Average High $13.10 2003-07 Average High $6.96 Source: www.cmegroup.com, October 2012

  13. New Crop Soybean Futures Chart Projected Price: February Average: $12.87/bu. Source: www.FuturesSource.com, June 5, 2013

  14. Pre-Harvest Marketing Thoughts • Revenue Protection preferred for sale of Crop Insurance Bushels = Delivery Bushels(Guaranteed Higher of Projected vs. Harvest Price) • Sell Delivery Bushels (Forward Cash Contract or HTA) when new crop futures are above the Projected Price (February average) • Generate adequate Cash Flow Needs for Fall 2013 through the Winter of 2013-14 • Sell Futures or Buy Put Options for Non-Delivery Bushels. Source: Johnson, ISU Extension, June 2013

  15. 5 Crop Insurance Strategies Keep Good Planting and Yield Records Work with your Crop Insurance Agent & Grain Merchandisers Use of Revenue Protection (RP) Crop Insurance; consider use of Hail/Wind Endorsements Caution for Selling Delivery Bushels if taking Prevented Planting Selling Some Guaranteed Insurance Bushels (Use the Spring and Summer Months) Source: Johnson, ISU Extension, June 2013

  16. 5 Crop Insurance Web Sites Ag Decision Maker – ISU Extension Econ (Decision Tools, Newsletters, Publications, Voiced Media, Monthly e-Newsletter) www.extension.iastate.edu/agdm USDA Risk Management Agency (RMA) www.rma.usda.gov Farm Doc – U. of Illinois Extension Econ www.farmdoc.illinois.edu Ag Manager – K-State Extension Econ www.agmanager.info Crop Risk Management - ISU Polk County (Crop Marketing Newsletter & Crop Insurance Updates, Webcasts) www.extension.iastate.edu/polk/farm-management Source: Johnson, ISU Extension, June 2013

More Related