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Alberta Canada | To reduce the risk of selling at too low of a price, buy inputs at the same time. Selling coverts grain into cash. Holding large amounts of cash when the government is handing it out by the trillions may not be a good idea. If you own the inputs (like fertilizer) and by next spring the prices (corn and everything else)go up, at least you bought your inputs at today's price. if prices go down, it's still OK because you locked in a profit by selling your corn high, which will pay for the things you bought. The worst case would be if you sold corn and had nothing (seed,fertilizer,land,equipment) locked in. You might find the higher prices for these inputs eat up the expected profit. | |
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Bird in the hand is worth two in the bush
