fORWARD SELLING ON THE BETTER FARMS
All three farms engage in some forward selling through the year but they take different approaches as circumstances differ from farm to farm.
The O'Donoghues and Crowelys dry and store grain, which gives them options of selling to merchants or direct to pig producers at any time of the year.
The Williamsons, like most growers, sell grain green direct to merchants at harvest.
The Crowleys have a trigger price, below which they are unwilling to sell. They sold a small percentage of their total production a couple of weeks ago, when this trigger price was reached but John indicated he is actively watching the market and is willing to sell more before harvest.
The O'Donoghues take longer term view and have sold small grain quantities throughout the year. Joe is happy about the increased price towards the middle of this year but he has regrets about the grain sold forward earlier in the season.
However, as land rental is a major part of their business, it's inevitable to link land rental to grain price so that budgets can be completed and a profit margin locked in.
The Williamsons have forward sold a good percentage of this year's projected harvest.
The terms of sale are that the grain is delivered at harvest for payment in September.