Tim Sullivan, Franklin, MN. Farms 5,000 acres with father, Mike, and brother, Pat, in a 50-50 corn-bean rotation. They own one-third of the acres, crop share 600 and cash rent the rest. They have about 290,000 bu of storage.

Previous Position:

Forward priced 200,000 bu of corn at $1.85. Didn't forward price any beans and were looking to take the LDP, hoping for a post-harvest rally.

2001 Results:

Sold all corn for December delivery and sold beans at harvest. Averaged $1.80 on corn and a few cents better than loan on beans.

2002 Position:

The Sullivans don't plan to sell any beans unless prices move above loan rate. But they've forward priced about tow thirds of their corn at $2.40. They've also taken a long $2.37 position in December corn.

“We're out about 8¢ right now, but we're probably going to hold that position through planting,” Tim says.

2003 Position:

Currently, no corn or beans priced.

Chris Karr, Seymour, IL. Farms 1,400 acres. He owns 190 acres; the rest is crop-shared or cash-rented. He changed from last year's 50-50 corn-bean rotation to a 60-40 rotation for 2002. He has 35,000 bu of storage.

Previous Position:

Forward priced corn from $2.25 to $2.44 for fall or January delivery. Forward priced 10% of his bean crop at $5.

2001 Results:

Planned to have 60% of his corn forward priced but exceeded yield expectations by 30 bu/acre. Averaged $2.18 on corn sales. LDP on beans ranged from $1.05 to $1.28/bu; sold from $4.20 to $4.65.

2002 Position:

Karr plans to sit tight on his 2002 beans but has forward priced 10% of his corn for December delivery at $2.15. He contracted 25% of his corn to be sold by Top Flight Grain, which has a marketing pool of 2 million bu.

“Our local advisors are saying that the board could go up to $2.35-2.40, depending on the basis,” Karr says. “The basis here is about 20¢, which means I'm going to sell a lot of corn at $2.20 if I get the chance.”

2003 Position:

Karr has sold 10,000 bu of corn for fall 2003 at $2.27.

Dennis Stephen, Williamsport, IN. Farms with his three sons, Travis, Mark and Aaron. The family increased its operation from 12,000 acres to about 14,000 acres. They own 5,000, crop share 3,000 and cash rent the balance. They plant a 30-30-40 ratio of corn, food-grade corn and beans, and can store 700,000 bu.

Previous Position:

Hedged half the beans at $5.61/bu. Made cash sales at $2.80 and $2.90 for 160,000 bu of food-grade corn and hedged corn at $2.50, $2.60 and $2.70.

2001 Results:

With a December basis contract, a $5.61 hedge and LDP, average price was just over $6/bu for beans. With a bumper corn crop, 200,000 bu of unhedged corn were placed in a $2.20 July futures contract. Hedges ranged from $2.70 to $2.40.

2002 Position:

Stephen has about ⅔ of his corn crop hedged. He entered $2.64-2.70 hedges last year and has hedged this year for $2.34.

For beans, he hedged 40,000 bu at $5.61 last year. He's playing an option spread with 100,000 bu, writing a $5.20 call and buying a $4.40 put.

“If beans go to $3.90, I'll pick up 50¢/bu on my put,” he says. “The government guarantees me $5.40. I can take my LDP, take the money on my option and then I've possibly got $6 beans.”

2003 Position:

Stephen has hedged about one-third of his corn crop at $2.54.