Use your breakeven
Your breakeven price is still the foundation of any marketing plan. University budget models for 2014 show slim margins, at best. A corn price of $4 per bushel to $4.50 is a Corn Belt norm. Beans at $11-$11.50 per bushel are being projected.
Plug in your expected yields and gross revenue, and then subtract your fertilizer, seed, insurance, storage, fuel and other costs per acre. If there’s projected profit, it’s likely slim. “In past years, you knew you would profit,” Hart says. “Now, with lower prices, you need to know exactly what your cost of production is.”
Alexander says that if there are even normal corn and bean crops in 2014, “it may be difficult to obtain a breakeven price for either. “So it’s not too early to start marketing your 2014 crops,” she says. “Set down with your elevator or marketing consultant to get started.”