Issue 31
Marketing Guide 2000
 

Prairie Grains is the official publication of the Minnesota Association of Wheat Growers, North Dakota Grain Growers Association, South Dakota Wheat, Inc. and the Minnesota Barley Growers Association.

Copyright
Prairie Grains Marketing Guide 2000

Prairie Shortcuts

Three Steps to Farm Marketing

1. Calculate your breakeven — This is where true farm marketing starts. A producer must know whether a certain price represents a profit or loss. Without accurate recordkeep-ing, it is impossible to determine a breakeven point for each enterprise.

2. Make a marketing plan — Over 90% of today's producers have no marketing plan whatsoever. It's not outlook or more marketing information that is missing—but a marketing plan. A producer who has a plan can have a systematic approach when dealing with the markets.

3. Execute the marketing plan — Execution means discipline. Following through with the marketing plan is the hardest part of farm marketing. Even if producers know their breakevens and have a marketing plan, failing to follow through will make the plan meaningless.

By Randy Allen, RWA Financial Services Inc.. Visit RWA's website www.farmrwa.com and check out the online breakeven worksheets for wheat, corn, and beans.

MN Ag Dept steps up risk management efforts with Bullock
The Minnesota Department of Agriculture is stepping up its risk management education efforts, with the staff addition of risk management specialist David Bullock, who before joining the MDA was employed with the Minneapolis Grain Exchange.

Bullock has established an online locator of Minnesota risk management providers and resources at www.mda.state.mn.us/risksurvey/start.asp.  He's also involved in a new pilot program to certify risk management consultants, and writes an online newsletter, Risk Management Monthly, that may be found on the MDA's website at: www.mda. state.mn.us/Risk_Mgmt/risknews.htm. The July issue RMM online includes a summary of the 2000 Agricultural Risk Protection Act.

UM Rural Response offers online resources
The University of Minnesota's online Rural Response program www.extension. umn.edu/ruralresponse offers resources on a variety of risk management and rural issues, including alternative agriculture, career exploration, communities, small business and rural development, families and youth, financial management, legal issues, managing change, and of course, marketing. Topics under Marketing Risk Resources include "Optimal Grain Marketing: Balancing Risks and Revenue," "Developing and Implementing A Marketing Plan" and "Grain Pricing Strategies for the 1999 Crop," by Ed Usset, U of M extension marketing specialist. Much of Usset's information online at www. extension.umn.edu/ruralresponse/rme/marketing/resource.html is still very applicable this year.

Winter wheat a production hedge for some
There's an element of risk management in the production practices and crops that producers choose. For some grain producers, their production hedge is planting different crops, including winter wheat. You can find updated varietal performance data for winter wheat at the NDSU Small Grains Page: www.ag.ndsu.nodak.edu/aginfo/smgrains/smgrains.htm

Report lists 49 KC wheat futures trading strategies
Moore Research Center, Inc., has published a special report listing 49 seasonal trading strategies utilizing Kansas City Board of Trade wheat futures, both alone and in spread trades against other grain markets. The report, which includes seasonal pattern charts and detailed tables of hypothetical trading results, is available free of charge. You can request a complete copy of the 2000 KCBT Wheat Report in PDF format online: www. kcbt.com/moorewht.htm.

Farm business planning online
Farm business planning is an ongoing process that does not have a clear starting or stopping point. That's a key point in North Dakota State University's Farm Business Planning Manual, online at www.ext.nodak.edu/homepages/aedept/FBusplan/index.htm.  It includes sections on setting goals, identifying and testing alternatives, developing and testing transitional plans, managing constraints, and enterprise analysis.

The University of Minnesota's Center for Farm Financial Management (www.cffm. umn.edu) is also a good online resource for farm business management. It includes information on farm planning, financing and analysis, as well as links to computer software designed to help producers plan and execute farm business decisions.

November Good for Barley Sales
Minot Barley Prices - Target November for Sales

This chart which tracks annual feed and malting barley price patterns out of Minot, ND from 1994 to May, 2000, indicates that modest seasonal strength in barley prices can usually be expected following harvest.