Hedging Handbook for the Data-Driven Farmer: How to Build a Strategy for Overall Farm Profitability

As a farmer, you invest a tremendous amount of time, energy and resources in your crops. But at the end of the day, you have to do more than just grow crops. You have to make a profit.

And one of the challenges you face when trying to achieve this goal is that commodity markets can be quite volatile. Take a look at corn futures and soybean futures throughout the 2019/20 marketing year to see just how dramatically grain prices can change:

corn-futures-2019-20 soy-futures-2019-20

The price of corn and the price of soybeans fluctuated significantly over the course of the year in response to factors such as USDA forecasts, trade war policies and a global pandemic, just to name a few. 

This is the backdrop against which you must balance the upside potential and downside risk of any and all pricing decisions you make, asking yourself the following questions:

  1. When should you sell?
  2. How much should you sell?
  3. Which contracts should you use?

Unfortunately, we find that many farmers end up making these important crop marketing decisions based on emotion and/or guesswork, attempting to align their sales with market highs. 

A data-driven approach to crop marketing

At Farmers Business Network℠, we believe there is a better way to market your crops—one that can empower you to address those three questions in a disciplined way, evaluating the trade-offs that come with the marketing decisions you make. 

We’ve put together our Hedging Handbook for the Data-Driven Farmer to help you understand some of the basics of our strategic approach. 

This guide will show you how you can take a comprehensive look at your hedging activities—risk management strategies such as futures and options, crop insurance and cash contracts—and utilize data to develop a market view that can inform your pricing decisions. 

We’ll also give you a quick tour of HedgeCommand, the crop marketing system we’ve designed to deliver personalized, data-driven recommendations straight to your mobile phone.

Build a strategy focused on overall profitability

Want to learn more? Download a free copy of our guide and learn how you can leverage data to focus your crop marketing strategy on overall farm profitability.


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FBN Market Advisory services are offered by FBN BR LLC, dba FBN Brokerage, FBN BR and FBN Market Advisory - NFA ID: 0508695

The risk of trading futures and options can be substantial and may not be suitable for all investors. All information, publications, and reports, including this specific material, used and distributed by FBN BR LLC shall be construed as a solicitation. FBN BR LLC does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71. This website contains information obtained from sources believed to be reliable, but its accuracy is not guaranteed by FBN BR LLC. Past performance is not necessarily indicative of future results. For the purposes of quality assurance and compliance, phone calls to and from FBN BR LLC may be recorded.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to, persons residing in Australia and Canada.  

FBN Crop Marketing is offered by FBN CM LLC and is only available where FBN CM LLC is licensed. We do not guarantee customers will receive specific benefits or value from participating in FBN Crop Marketing; results will vary. FBN Crop Marketing offerings involve risks, including the risk that market conditions deteriorate, resulting in contract participants receiving a lower price for their grain than had they not participated. 

Nature and scope of services is dependent on information provided by you, our customer, and may vary as a result. We may change any or all of the services from time to time upon notice to you.