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| I don't see anybody criticizing any body else for selling too soon. What I do see are a few people chiding those who are somewhat cautious. Am I missing something?
I think part of the reluctance to sell right now is that a good many of us have "sold to soon." I know I sure have on everything the last 2 years. Kind of sticks with a guy. Hell, I could have bought and paid for bins plus paid the interest on the operating money I'd have had to borrow. That goes for both forward and spot cash sales. With that said, this market doesn't show much sign of abating. I think that's the other thing that makes it hard to sell into. You only have so much production to sell, and there's only so much risk you can take on forward production, especially two years out. Every time the market sells off a little, off it zooms again. How high is rent gonna be in two years? If we continue to have $12 plus beans I bet it's gonna be higher than today. How long do you have it locked in for? If you own all your ground, or the majority of it, it would be less of a question mark. Sell too cheap and somebody else is gonna be farming that ground. Anybody who thinks there's no risk selling crops 2 or 3 years ahead isn't thinking quite right. Sure, lock in 5-10%, but how deep into that well do you wanna go?
Edited by Pofarmer 2/20/2008 11:41
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Head in the sand on 09 and 10 bean sales?
