Crop and Livestock
Price Projections for 2002

Short and long-term agricultural planning price projections for North Dakota are now available, says Ron Haugen, North Dakota State University extension farm economist. The publication shows 2002 price projections for crops and livestock produced in the state and price estimates for future years, as well as historical prices as a reference.

The estimated short-term planning prices should be used as a guide in setting price expectations for year 2002 production, Haugen says. These planning prices can be used for preparing annual enterprise budgets and annual whole-farm cash flow projections. The short-term prices should not be used for planning capital purchases or expansion alternatives which extend beyond the next production year, he cautions.

To obtain this free publication, “Plotting A Course 2002” (EC-1090), call (701) 231-7882 or write to NDSU Agriculture Communication, Distribution Center, Box 5655, 10 Morrill Hall, Fargo, ND 58105-5655, or contact a county office of the NDSU Extension Service. Requests may also be faxed to 701-231-7044 or e-mailed to dctr@ndsuext.nodak.edu

The publication is also found on the web at www.ag.ndsu.nodak.edu

Commodity Basis Displays Distinct Seasonal Pattern
To use marketing tools effectively, it’s necessary to develop a solid knowledge of cash-futures price relationships, according to Ed Usset, University of Minnesota extension grain marketing specialist.  The difference between cash and futures prices is commonly known as the basis. “The basis for a storable commodity displays a distinct seasonal pattern,” says Usset. “With grain stocks and the demand for storage high at harvest, cash prices are often at their largest discount to the futures. As the crop is put away and some is used, the supply of storage increases relative to demand for its use, and the basis narrows. Astute decision-makers gather a 3-5-year history of their local basis, using daily or weekly data. Many marketing tactics require a knowledge of the basis.”

Crop producers can find local basis information online at www.smallgrains.org .Click on “Market Quotes and Charts,” then “Local Basis Information.”

Developing Pre-Harvest Marketing Plan Focus of Feb 13 Workshop
The University of Minnesota’s Center for Farm Financial Management (CFFM) is bringing a one-day workshop called “Develop and Execute your Pre-Harvest Grain Marketing Plan” to six different Minnesota cities in January and February, including Crookston on February 13.

Edward Usset, U of M grain marketing and teaching specialist, and Bob Craven, director of the CFFM and economist with the U of M Extension Service, will lead the programs.

During this workshop, producers will examine the key elements of a pre-harvest marketing plan and learn how to establish price objectives and decision dates. The use of a wide variety of futures and options pricing tools will be reviewed. “Marketeer” software will be used to highlight the details of market plan development. New for this year is a simulation game where participants can exercise their marketing plan in a real world environment.

The registration fee is $95 per person, which includes lunch and handout materials. For a brochure or to register, contact CFFM at (800) 234-1111 or (612) 625-1964.  You can also e-mail your requests to cffm@cffm.agecon.umn.edu or look up details on the CFFM web site at www.cffm.umn.edu. To learn more about the content of the course, contact Ed Usset directly at (651) 681-7999, or e-mail usset001@umn.edu

Early Canola Sales Make Risk Management Sense
Marketing strategies need to be in place for selling canola in the bin and a look at factors influencing the canola price suggests a marketing plan that takes action earlier in 2002 rather than later, according to George Flaskerud, NDSU extension crops economist. Get the full story on this topic and other marketing information on the NDSU Crop Marketing and Risk Management page at www.ag.ndsu.nodak.edu/aginfo/cropmkt/cropmkt.htm