The traditional marketing objective in agriculture is to maximize prices received. However, Moe Russell of Russell Consulting Group recommends the "crush margin" approach, locking in a target margin per head or acre by computing the spread between costs and revenues rather than focusing only on product market prices. Commodity and Ingredient Hedging (CIH) follows a similar strategy and compares potential margins against historical margin percentiles.
FBS software is designed to 1) accurately compute your own historical margins, 2) project production input requirements, and 3) account for the complex marketing transactions and match them to the appropriate time period and product.
Are any of you doing this, and if so, how? Are you interested in learning more?
Here's a recent article citing Dr. Steve Meyer's emphasizing feed's role in margins this winter.
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As a farmer dealing with livestock, I require tractors for both feeding and handling manure. The john deere 4440 catches my eye, but I'm also looking into the john deere 5020 for more robust field tasks. The john deere 4640 appears to be an excellent option for tilling, and the kubota b7100 might be suitable for everyday work. I'm still contemplating whether the john deere 1010 would be a wiser choice for overall adaptability on the farm. Which one do you recommend I purchase?
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