By Alexandra Henley, Partner Success Manager
How is the harvest progressing on your farm?
This is the number one question farmers face as they monitor their final yields and approach the grain market season. Despite scattered showers over the past few weeks, harvest rates continue to push forward with high projected yields.
Based upon the October 18th USDA crop progress report, 52% corn and 60% soybeans have been harvested with high projected yields. As of early October, corn yields are expected to average 176.5 bu per acre and soybeans are expected to average 51.5 bu per acre (up 5% from 2020). Even though the numbers are looking promising, crop price movements are still vulnerable and dependent upon external factors.
During this harvest season, we’ve seen the markets bounce up and down for numerous reasons intimately tied to supply and demand shifts:
- Severe summer droughts across major parts of the U.S. farm belt drove prices towards an all-time high as projected yields were reduced
- Projected supplies of corn, soybean, and wheat remained high in both the U.S. and around the world, ultimately relieving the high price pressure
- Swings in global agricultural trades with a heightened focus around the China Phase 1 Agreement
- Late season heavy rains generated higher yields for some and caused quality concerns for others
The capital-intensive nature of farming combined with the volatility of prices, makes planning for financial risk a top priority for farmers across the US, especially as new harvest data continues to be released.
This is where Figured offers peace of mind. Farmers are able to take a realistic look at their financial picture while taking all production, marketing, and standard operational risks into consideration.
With Figured, farmers are able to track their actual harvest inventory against their projected numbers to account for yield and market price shifts. This insight empowers farmers to make informed decisions when planning for the year ahead; whether it may be, when talking to lenders, evaluating forward contracts, investing in new equipment, or determining what level of crop insurance coverage is necessary.
By putting the 2021 harvest season into perspective, farmers and their management teams can more easily understand how to react and recover if things do not go according to plan, and confidently look ahead to the 2022 season.
If you’d like to find out more about how Figured makes it easy for farmers and advisors to get a clearer picture of their farm finances, get in touch with us today.