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Grain Marketing Plans for Farmers
Some of the most challenging management judgments that grain producers face involve decisions about when and how to market grain. At any one point in time, changes in supply and demand factors and subsequent price trends are difficult to predict. This uncertainty is inherent in the process of determining grain prices, making effective management of price risk a major challenge for grain marketers.
Ongoing uncertainty about price prospects serves to emphasize the need to develop grain-marketing strategies with specific price goals and contingency plans. Without preset price goals based on-farm financial needs or some other farm business planning principle, grain producers are vulnerable to making marketing decisions
based on short-term market trends, perceptions and emotion.
How effective are efforts by farmers to improve selling prices in comparison to managing other key factors in their farm business? Recent research indicates that yield levels, costs of production, and technology adoption have a greater impact on relative farm profitability than does grain selling price
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