I had a chance to visit with folks from Cargill yesterday when they came to my farm for an interview to be aired in upcoming weeks on US Farm Report.
I have been using their ProPricing contracts for years - for what that is worth - but my experiences this year have left me re-thinking this strategy. Guys who did nothing look like geniuses right now, and forward selling for 2007 seems like a non-starter. The Cargill guys admitted the program was a tougher sell this fall.
As I pondered deep thoughts about these developments in the combine zipping through very mediocre corn (remember the bad planting season I whined about last spring?), I noted the things I knew:
- Am I going to plant more corn next year than usual? Yes.
- Am I reluctant to forward price that production even at prices I would have given my second-favorite power tool for just 4 months ago? Yes
- Can I picture a scenario where prices don't keep going up and up and up? Nope
- Can I make any money at current price offers? Yeah, a little (heh-heh)
I will re-sign with the Cargill Pros for my fall 2007 delivery corn, and may do my usual averaging spring contract as well. After all, consistency is the hobgoblin of little minds...
[No - they didn't pay me to plug the program - actually I paid them]