An Iowa State University economist says farmers should plan carefully when selling their corn and soybeans this fall as prices have been volatile. Robert Wisner says getting the best price out of your grain can be tough. He says there’s no real answer, but he says there are things you can do. The first is to set some goals related to the financial needs of your business and the price you need per bushel to meet those goals. Wisner says you need to set realistic goals to make it work. He says hitting the top of the market with all your grain is nearly impossible, so you need to set a price at or above the financial needs of your business. Wisner says one approach is a “scale-up” strategy. He says you can determine that for each rise in the grain market, you’ll sell a quantity of grain. He says you need to determine how much you’ll sell ahead of time. He says there’s also what are known as “Decision Rule Contracts” in which a grain buyer uses a computer to figure several variables in determining when to buy your grain. He says it’s something to explore if you grain dealer uses the contracts. Wisner says you want to have a plan in place to catch prices on the up side. He says you want to move grain into the market as prices are increasing, and before it hits its top. He says historically, once grain markets hit a top, they decrease much more rapidly than they increase. For more information, you can contact your local extension office.
