Sometimes my thought process doesn't always follow the seasons. We had a number of meetings and visits this past week about looking forward to the future and why we do what we do.
This is the last week of January already and for the most part the last crop season is wrapped up. 2015's crop is same as gone and the obligations from last year are taken care of.
The guys are working on machinery, selling hogs, still doing dirt work, working on projects at home, and a little ice fishing.
We are only 9 visits away from Easter and the first of April. So we are also getting in seed for next year, tuning up the technology on planters for spring, having tax appointments, deciding acres, buying chemicals, doing cash flows, and meeting with bankers to show them our plan for the new year.
Yes, it's a much different scenario in farming today than it has been. There are no home runs and it takes a sharp pencil to get a base hit.
There are two simple factors that determine viability in farming. The first is the income side. When markets were higher, selling when you either needed the money, needed the bin, or it smells, worked. Today it doesn't.
The second factor is obviously the expense side. Some inputs haven't changed much like seed, chemicals, and farm payments. Others have like fertilizer and fuel. Cash rent is coming down. However some folks have multi year contracts that need to be fulfilled.
So, what does it take to be a cheerleader and keep a positive outlook on farming? A plan. Know exactly what your cost are and lock those cost in. Know in advance what month you want to sell and deliver the crop you haven't even planted yet, and set the basis (permission to deliver) for those months. Now that you know your cost and when you want to deliver, start setting market goals for those months. Most market opportunities for the 2016 crop were over a year ago. We are already watching opportunities for 2017.
There is bad and good to this way of marketing. The bad is you rarely hit the high market which is what a landlord told me is a homerun. The good is you usually get a base hit. Base hits keep you in the ball game. Because of family interested in this business we need to stay in the ballgame.
I just shared with you in a nutshell how things look from an earthly perspective. I would not be telling you the whole story if I didn't tell you on our own we are pretty inadequate and daily ask for God's direction and help. Yes, even in business. On our own we follow the up markets with greed, and wait for the top. And then follow the down markets with hope, and finally despair, and sell on the bottom.
Next week Monday, February 1, we as Iowans get to show our nation what kind of president we think would be good for our country. Because of my involvement in conservative politics I get to meet and interact with these candidates.
Tomorrow, January 25, at 7pm my friend Rick is coming to our family farm shop to share his dreams and views. You are invited to take an hour and come meet, greet, and listen. I know what you're thinking. Rick doesn't have a chance. I am aware of that however I want you to know I don't use electability as a measuring tool for character and ability. I also want you to know the media controls so many folks thoughts, and things are so much different when you get to know folks personally.
As farmers we not only feed our families, we feed our country. We feed the world and as I debated to myself whether or not to have a presidential candidate venue, I decided it would be a good thing for folks that don't get to the farm often, get to meet good, salt of the earth, working people.
Just a note. Stay tuned next week. This contraption showed up yesterday evening. It's called "the beast", and it's used to scrape and brush snow off the ice to make a track for motorcycle racing on pond. Winter has finally arrived. Have a great week and love what you do.
No comments:
Post a Comment