Transcript Stewart-Peterson Group

Are You the Gatekeeper to Your
Farm’s Financial Future?
Cathy Ekstrand – Senior Market Advisor
Stewart-Peterson Group
Futures trading is not for everyone. The risk of loss in trading is substantial. Therefore, carefully consider
whether such trading is suitable for you in light of your financial condition.
Commodity Consulting and Marketing Services
866-334-9779
[email protected]
www.stewart-peterson.com
Yates City, Ill.
Disclaimer: Futures trading is not for everyone. The
risk of loss in trading is substantial. Therefore,
carefully consider whether such trading is suitable
for you in light of your financial condition.
Why Marketing?
Questions to ask yourself…
Do you help with marketing?
Why or why not?
Marketing determines your farm’s income:
It’s how you get paid.
OPPORTUNITIES AND
RISKS ARE GREATER
THAN EVER BEFORE!
Market Volatility
World Political Unrest
Supply & Demand-difference in crop value
World & Domestic Weather
Record Demand
Funds
Economy
CHINA
Why Worry about Marketing
• Risks and rewards are greater than ever
• Outside market influence
• Similar farming practices
– Marketing can be what separates a good producer from the average
• Harder to cost-manage your way to
profitability
Importance of Marketing
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Higher prices= Higher income and continued success
Greater risks/rewards
Extreme price swings-volatility
High production costs
Risk of narrowing profit margins
Outside market influence
Next generation/retirement
What can you do?
 Ask questions
 Find time to learn
 Find a source for marketing education
 If you need help, look to find it
• Look for someone you trust
• Listens to you
• Has your values in mind
Qualities of Good Marketers
• Discipline to make decisions…
when lacking all the information
• Uses strategy, does not react to latest trend
• Invests time to learn marketing tools
• Willingness to ask for help
Do women make better marketers?
Emotional Attachment????
Grain= $$$$
Hedging
• Selling or buying of futures or options contracts
as protection against the risk of loss due to
changing prices in the cash market and serves as
a substitute for selling or buying a commodity in
the future.
– A hedge provides a way to lock in a price floor or
ceiling for what you plan to do in cash market in the
future.
– Always correlate hedging with your cash product.
Strategy vs. Outlook
Outlook:
– Is the expectation or
belief about the future
– It is a habitual or
characteristic mental
attitude that determines
how you will interpret
and respond to situations
Strategy:
– A plan of action
designed to achieve a
particular goal
– A plan of action to
achieve a successful
advantage
Strategy vs. Outlook
Decision Criteria:
Value
Time of year
Trend
Cash flow
How much to sell
Outlook
20%
Strategy
80%
Stewart-Peterson Group
• Commodity consulting and marketing services firm
that works with producers, helping them to maximize
opportunities and manage risk.
• In West Bend, Wisconsin since 1985
• Offices in Yates City and Champaign, Illinois
• Work with producers in U.S. and Canada
I have advised producers for over 10 years.
Market Scenario PlanningSM
• What are you going to do if the market goes up some?
• What are you going to do if the market goes up a lot?
• What are you going to do if the market drops some?
• What are you going to do if the market drops a lot?
Strategy & Budget
• Create and discuss a marketing strategy
– Include your entire team
• Budget funds - just like you budget funds for
seed, fertilizer, equipment, rent
What’s happening now?
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Corn this year vs. last
Acres report due out March 30th
Back-to-back short crop years – high prices
This year, should projected corn acres get
planted and have a trend line yield, prices
could fall – a lot.
• Soybean price levels – profitable.
What to consider?
• Marketing is going to become even more
important to you as it becomes more difficult
to cost manage your way to profitability and
as price volatility remains.
• Will your marketing strategy allow you to
become not just profitable, but competitive in
the years to come?
Where to begin
• MAP – Marketing Assessment Profile
– A series of questions we developed to reveal
what, if anything, is holding back your marketing.
– Helps determine where you may need help.
– 20 to 30 minutes
– Free with no obligation, $100 guarantee
Stewart-Peterson Can Help
 Market360® Stewart-Peterson, Inc.’s signature consulting fee based service
created for busy producers who understand the importance of having
comprehensive marketing strategies in place. Provides marketing strategies
for up to three years of crop. We do not focus on where the market will go;
instead, on preparing clients for whatever the market does.
 Full Service Advisory: A service of Stewart-Peterson Group, Inc. A producer
has a one-to-one relationship with an advisor. The advisor is a resource for a
farmer’s hedging needs and often times cash sale advice as well. We are here
to help producers learn how to implement strategies to help manage pricing
opportunities and risks.
For More Information:
Cathy Ekstrand, Senior Market Advisor
Stewart-Peterson Group
115 W. Main St.
Yates City, IL 61572
[email protected]
866-334-9779 Office
309-231-9784 Cell
Disclaimer: Futures trading is not for everyone. The
risk of loss in trading is substantial. Therefore,
carefully consider whether such trading is suitable
for you in light of your financial condition.
Thank you.
If you would like more information about how you can get
started marketing well, contact us for more free resources.
Cathy Ekstrand, Senior Market Advisor
866-334-9779
[email protected]
www.stewart-peterson.com