In
the period 2014 through the first half of 2020, producers saw corn prices less
than $3/bu. for longer periods of time than $4/bu. or more. Iowa corn prices averaged
less than $3.40/bu. over this period.
“How to get $4 corn” was a title that got
attention. While the program focused on $4 corn, it was not about $4 corn. The
purpose was to help producers understand how to combine pre and post-harvest
marketing to maximize the price received for corn, or soybeans, or wheat.
This
3-hour program was divided into three separate steps towards the goal of $4
corn. Step one was pre-harvest marketing with December futures. Step 2 involved
rolling the hedge to July before harvest. The final step was storage and
waiting to set the basis and deliver grain. Each step involved an educational
presentation, followed by a simulation game that allowed participants to do it
themselves.
This
was a great program. The pandemic made it very difficult to execute the plan in
2020, and we fell short on the number of programs conducted, however we were still able to complete 28 workshops across multiple states (MN, IA, ND, SD). The
message in the program is ageless, and this workshop will be used for years
into the future.