Whenever you contract ahead you are protecting yourself from the down side, but you are also locking out the chance for a higher profit if the price goes up. If you are highly leveraged, maybe even on the brink of disaster and need to guarantee the banker at least enough of a positive cash flow to service your short term loans you do need to sell ahead.
I have contracted ahead a few times and it didn't help me sleep any better because I was afraid I had locked myself out of a bigger profit. Every time I sold ahead, except for one time, the current local price was higher than the price I had contracted for, at delivery time. I have a feeling we won't see prices drop a whole lot anytime soon. Bad for the end user but good for us farmers. Jim
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Today's Featured Article - Storing Your Tractor - by Staff. If your tractor is going to be stored for any length of time, a few precautionary measures are helpful in preserving various parts, also in avoiding future difficulty. Store tractor under cover. If impossible to place tractor under cover, be sure to cover air stack and exhaust pipe. Drain radiator and engine block. To avoid gum content collections, drain both fuel tanks and carburetor. Leave radiator and fuel caps slightly loose to protect gaskets. Block tractor up to remove weight from tires and to keep tires from contact with moist floor.
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