Over the next several weeks Purdue’s Center for Commercial Agriculture is offering farmers a chance to sharpen their crop marketing skills by learning more about strategies that you may not have previously attempted or even known much about. The Purdue Crop Marketing and Farm Finance Workshops, eight of them total around Indiana, will include a session to help those who have invested in their own grain storage earn a better return to those facilities.
“So, the starting point there is to learn more about basis and particularly basis patterns in your part of the state,” says Jim Mintert, director of the Center. “and use the knowledge of those basis patterns as a way to forecast basis and really try and improve your return to storage by capturing the changes in basis that occur during the course of the storage season.”
Purdue has a relatively new online basis tool that provides historical basis details for Indiana crop reporting districts. You can track basis movement over time with that tool. Mintert explains developing and using this knowledge can improve profitability.
“You can look at the average basis level for a particular point in time in the year, for example maybe the last three years,” Mintert explained. “Some of the research we’ve done would suggest that is a pretty good forecasting tool and use that as a way to anticipate what the basis is going to do during that storage season and try and improve your returns. The research we’ve done suggests the returns could be significant and positive for many people, and that’s a way to improve your profitability. For some operations it might be the difference of going from a break-even situation to a profitable one, or if margins are tighter than that, maybe it’s the difference between not making any money at all and moving up to a break-even level. So, it’s enough to make a difference.”
Michael Langemeier and Nathan Thompson from the center will join Mintert and they will offer suggestions on how to prepare for a meeting with your ag lender.
Registration for the workshop is free, but you must preregister. Registration is available online at purdue.ag/workshop or you can register by calling 765-494-7004.
The workshops are sponsored by Purdue University’s Center for Commercial Agriculture and Purdue Extension.
Workshop dates and locations are:
Feb. 7 at Huntington County Fairgrounds – 1 p.m., 631 E. Taylor St., Huntington.
Feb. 8 at the Marshall County Building – 8:30 a.m., 112 W. Jefferson St., Room 304, Plymouth. Includes a continental breakfast beginning at 8:30 a.m. Workshop to follow.
Feb. 14 at Clay Co Fairgrounds – 10 a.m., 6656 N. SR 59, Brazil.
Feb. 15 at Madison Co Fairgounds – 9 a.m., 512 E. 4th St., Alexandria.
Feb. 18 at Tipton Co Extension Office – 9 a.m., 1200 S. Main St., Tipton.
Feb. 21 at Vincennes U Gibson Co Ctr – 6 p.m. (CST), 8100 U.S. 41, Fort Branch.
Feb. 22 at Spencer Co Youth & Cmty Ctr – 7:30 a.m. (CST), 1101 E. CR 800 N., Chrisney.
March 8 at Brookville Public Library – 9:30 a.m., 919 Main St., Brookville.