The Rural Voice, 2001-03, Page 45Speaking at the same meeting, crop
marketing specialist Bob Huckle of
Newbury suggested those who didn't
plant winter wheat last fall might
want to look at spring wheat this
year. But, he urged, price and market
the crop before you grow it.
Johnson also spoke on the subject
of wheat a day later at the Centralia
Swine Research Update in Kirkton.
The value of wheat in a crop rotation
is not just what it brings in itself, but
in the improvement in the yields of
other crops in the rotation. Even in a
year like 2000 when crops were
under stress, he said, there was a
seven bushel per acre increase in
corn where wheat was part of the
rotation.
Johnson, at the Kirkton meeting,
also emphasized the value of
underseeding wheat with red clover.
If corn is grown after wheat
underseeded to red clover the yield
will increase an additional 6.6
bushels, he said and soybeans will go
up 1.5 bushels. The red clover also
increases the advantage spreading of
manure after wheat harvest because
News
the clover will tie up nitrogen in an
organic form and prevent the loss of
nitrogen to the environment.0
Minimum pricing
strategy necessary
for crops
Having a minimum pricing strategy
before you plant is essential for
survival, Bob Huckle of Smart
Marketing Services told farmers
attending the Huron County Soil and
Crop Improvement Association
annual meeting in Blyth, January 30.
Huckle, who also cash crops near
Newbury, said the only time there's a
good price for a product is before it is
produced. "Historically, the best
price opportunities are ahead of
harvest 75 per cent of the time. You
have to watch out for the other 25 per
cent."
There are now fewer and shorter
opportunities to contract to get good
prices, Huckle said and the trend will
likely continue because of U.S. farm
policies. And, he said, because of
improving technologies, traders seem
to think there will be a crop no matter
what happens.
A grower who purchases a floater
clause on his crop insurance can
afford to contract, to the limit of his
crop insurance, Huckle said. "Three
out of four years you'll win," he said
of tying up the contract early. "One
in four years you won't be able to get
more though the contract."
Huckle showed that aggressive
marketing would have yielded $56 an
acre more in 1999 than if the crop
was sold on a cash basis. On 500
acres that would work out to an
additional .$28,000, he said.
Using "put" options that same year,
he said, the increased income would
have been $78 per acre over cash. or
$39,000 more on 500 acres.
On old crop sales, use the cash
basis, Huckle advised but for new
crops, develop a minimum price
strategy.
If the basis is strong, he suggested
forward contracting 20-25 per cent of
the planned crop. Use "put" options
on 75 to 85 per cent of the crop.
$20,000 Interest Free
Crop Producers, if you will be enrolled in crop
insurance in 2001 you may qualify.
Agricultural Commodity Corporation will again administer Agriculture &
Agri -food Canada's Spring Credit Advance Program, providing crop input
loans up to $20M interest free until December 2001.
OR
Combine with ACC's Commodity Loan Program which guarantees qualified
producers with input loans BELOW PRIME INTEREST RATE.
The first $20M is interest free while the balance is guaranteed no higher than
Prime minus .25%. (Our average in 2000 was Prime minus .80%)
try c".
Ce-
1..clin
to Ae
Ask about the TWO options available
1-888-278-8807
www.agcommcorp.org
MARCH 2001 41