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AGRICULTURAL MARKETING -- AGR 214

AGRICULTURAL MARKETING -- AGR 214. FARMER'S MARKETING WHEN AND HOW TO SELL. TIMING OF SALES CAN HAVE A DRAMATIC IMPACT ON PROFITABILITY. LET'S LOOK AT THIS CROP YEAR SAY A GRAIN PRODUCER HAS 500 ACRES OF SOYBEANS AND 500 ACRES OF CORN LET'S SAY HIS AVERAGE BEAN YIELD

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AGRICULTURAL MARKETING -- AGR 214

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  1. AGRICULTURAL MARKETING -- AGR 214

  2. FARMER'S MARKETING WHEN AND HOW TO SELL

  3. TIMING OF SALES CAN HAVE A DRAMATIC IMPACT ON PROFITABILITY

  4. LET'S LOOK AT THIS CROP YEAR SAY A GRAIN PRODUCER HAS 500 ACRES OF SOYBEANS AND 500 ACRES OF CORN LET'S SAY HIS AVERAGE BEAN YIELD IS 40 BU/ACRE AND CORN YIELD IS 150 BU/ACRE

  5. SOYBEANS --> 500 X 40 = 20,000 BU CORN --> 500 X 150 = 75,000 BU

  6. JULY 2008 CORN FUTURES LOW OCTOBER 2006 = $3.00/BU HIGH JANUARY 2008 = $4.90/BU RANGE = $1.90/BU

  7. July 2008 Soybeans $6.40/bu $3.40/bu

  8. JULY 2008 SOYBEANS LOW OCTOBER 2006 = $6.40/BU HIGH JANUARY = $12.80/BU RANGE = $6.40/BU

  9. WHAT DOES A 10% IMPROVEMENT IN SELLING PRICE MEAN? CORN --> 75,000 BU X $ .19 = $14,250 SOYBEANS --> 20,000 X .34 = $12,800 TOTAL = $27,050

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