Plan Ahead

NDSU Crops Economist Frayne Olson advises farmers to have a marketing plan in place and not try to chase the markets. “Let the market come to you because nine times out of ten, you’re not going to hear about it (market top) until a day or so afterward anyway, and by then it’s going to be too late.” It’s not just about maximizing gains but also finding ways to reduce losses. “The simplest method we have is to use options and to try and buy puts. You still need to set a price level that is based on your cost of production and what you need for cash flow”