Kim Anderson Guides Wheat Farmers Through Big DecisionsThu, 25 Sep 2014 17:22:23 CDT
As farmers begin to plant their wheat crop, Oklahoma State University Grain Marketing Economist Dr. Kim Anderson said farmers are making several decisions about the upcoming year. First farmers need to purchase their crop insurance coverage by September 30th. Secondly farmers are reviewing the supplemental coverage option which is part of the government program through crop insurance. Thirdly, farmers are deciding how to market the wheat they have left in storage.
On this weekend's edition of OSU's SUNUP TV program, Anderson tells Lyndall Stout that farmers can choose yield or revenue protection with crop insurance. With these low prices, more farmers are selecting revenue protection despite the on going drought. Within revenue protection, he said farmers have the optional units policy and the enterprise units policy. The optional units are based on fields within a section of land, so a whole second is one field. Enterprise units takes into account all farm ground within a county regardless of location is viewed as one farm. Anderson said the premiums are significantly less with the enterprise unit policy.
"If you put the pencil to it, the payoffs are often higher with losses with the enterprise units, than with the optional unit policy," Anderson said.
Though Anderson recommends farmers get with their insurance agent and map out both options before selecting a program for their operation. For the Supplemental Coverage option, producers need to make that decision by September 30th. Anderson said Supplemental Coverage is part of the Price Loss Coverage program and farmers need to be making that selection this month.
In terms of marketing the wheat crop, Anderson recommends a third, a third and a third, so one-third of the crop should be sold off in the September - October time frame. He said next week if the December contract is not above $5.70, then farmers will want to go ahead and sell off some and possibly the remainder of the crop. If the December price is above $5.70 he recommends holding onto the crop for a while before selling.
Between now and the end of the year, Anderson recommends farmers begin to stagger their marketing of the crop. He recommends selling 20 percent now and 20 percent every three to four weeks between now and January.
You can see their full conversation on SUNUP this weekend on OETA across the state of Oklahoma- or you can listen to Dr. Anderson's current wheat market analysis right now by clicking LISTEN BAR at the bottom of this article.
This week on SUNUP, we talk with Jeff Edwards about wheat planting progress, seed supply levels, insect scouting and soil fertility. Then, Brian Arnall offers advice on setting up N-rich strips to manage nitrogen fertilization in fields.
-- In Cow-Calf Corner, Glenn Selk has culling tips to help producers with marketing.
-- Then, Kim Anderson weighs the options producers currently have with crop insurance, supplemental coverage and marketing strategy amid low wheat prices.
-- In the Mesonet report, Al Sutherland and Gary McManus analyze recent air and soil temperatures and the latest drought monitor.
-- Jody Campiche looks at the Supplemental Coverage Option (SCO) for winter wheat producers, which has a Sept. 30 application deadline. She also has an overview of the new 2014 Government Program and Crop Insurance Decision Tool program. Find it here: http://okla.st/DecisionTool
-- Next, Derrell Peel covers management strategy for producers with plenty of planted wheat acres, but limited cattle inventory during record prices.
-- Finally, Dani Bellmer explains how soft drink waste potentially could be converted into ethanol.
Saturdays at 7:30 a.m. & Sundays at 6 a.m. on OETA-TV
Catch SUNUP online through the OSU website by clicking here or through YouTube by clicking here.
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