Marketing Management To Control Farm Price Risk
Extension economist Mike Sands led a two day marketing school urging farmers to push crop prices into the top third. He warned against emotional selling, outlined marketing plans with contingencies, and compared cash, forward contracts, and hedging. He stressed brokers should serve the farmer, not drive speculation, and urged writing a plan to guide decisions.
MENTIONED IN THIS ARTICLE
Mike Sands
Sands
Farm price must cover costs for effective hedging
Marvin Fausett, area Extension economist, notes hedging relies on knowing costs. Farmers should compute variable, total, and cash costs, set breakeven prices, and allocate equipment use. Review market history and seasonal trends to set feasible target prices, including wheat and milo dynamics, with drought effects and futures risk highlighted.
MENTIONED IN THIS ARTICLE
Marvin Fausett
Area Extension
Fausett
Hedge Strategies in Futures to Aid Farmers and Storage
Farmer hedge options explained by Mike Sands Extension economist cover production storage and long hedges. Examples show hedging 50 percent of crop, basis risks, and net prices after storage costs. Storage and feeder hedges illustrate costs, profits, and risk. advise evaluating variable costs and storage arrangements.
MENTIONED IN THIS ARTICLE
Mike Sands
Extension Service
Sands
Learning the futures market through hedging and minis
Extension economist Mike Sands outlines hedging basics at a marketing school. He explains contracts, margins, and basis, and shows a June corn hedge example with December futures to illustrate profit, risk, and the need for broker support, margin calls, and costs.
MENTIONED IN THIS ARTICLE
Mike Sands
Mid- American Exchange
Sands
Manuger
Basis Useful Market Measure in Hedging Decisions
Kansas State University economist Mike Sands argues that basis charts help farmers gauge marketing decisions across cash bids forward contracts and storage. He demonstrates using March and May soybean futures with bases and hedging costs to compare expected prices to local cash bids and storage viability.
MENTIONED IN THIS ARTICLE
Mike Sands
Kansas State University Extension Service
Sands
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