Hobby farmer - Organic Prices

[pourfarmer]

Just wondering if you're seeing the same
price jump in organic commodities as I am.
12bux for feed wheat, milling wheat at
13.50, looks like we're going to be close
to 6.50 on oats. Flax damn near 30. Guys
wants to buy right away, wonder what they
will be paying come jan or feb...

[Hopperbin]

Not bad if you got something to sell!

[hobbyfrmr]

Pour,

I have sold all new crop barley for $8.75/bu FOB
farm.
New crop oats full production still in the field sold
for $6.00/bushel fob farm.
On my farm that is good profit I have sold. The
bins will be empty by February.
The last time I saw these kind of prices off the
combine, I sold half inventory and kept half for
winter rallies. Three months later the US
Recession set in, prices cut in half and
movement was extremely slow for 2 years after. I
am selling because It is profitable, and I have
seen that movie before!

[hobbyfrmr]

That is feed barley, and milling oats with an act of
God between now and the bins.
I did to grow wheat this year. I have hemp full
production priced at a dollar a pound. That's it, not
much of a farm, so when I see black ink, I have to
act.
My fast and rough math is $200.00/acre cost of
production. This is high, but this way I do not
make mistakes. Ie. feed barley 35 bu/acre
(disappointing) x 8.75= 306.25 gross. Less
$200.00 cost = profit $106.25. X 200 acres =
$21,250 . That is fine with me.

[hobbyfrmr]

I have heard some old guys say, " the best time to
sell is when you have a buyer."
This is another reason I am selling now. I have
worked with these buyers for 4 years and trust in
the business. DO credit checks on new buyers.
One main buyer very solid, very straight forward
told me when feed wheat was at $10.00. Bid, it
was over priced. You are at $12.50?
End users don't like to pay these high prices
because it cuts into their profits and cost of
production. Who knows? Wheat may goto
$25.00/bushel if you wait long enough.

[hobbyfrmr]

I have heard some old guys say, " the best time to
sell is when you have a buyer."
This is another reason I am selling now. I have
worked with these buyers for 4 years and trust in
the business. DO credit checks on new buyers.
One main buyer very solid, very straight forward
told me when feed wheat was at $10.00. Bid, it
was over priced. You are at $12.50?
End users don't like to pay these high prices
because it cuts into their profits and cost of
production. Who knows? Wheat may goto
$25.00/bushel if you wait long enough.

[pourfarmer]

Still hoping for that 25 dollar wheat i
hear about from 2005 (before i got into
the organic game). I haven't sold anything
yet, just calling around getting prices.
Wish I had more to sell, oh well seems the
way it goes either get good price, but
have no grain. Or bumper crop and shitty
prices. Not complaining, just saying.

How are you figuring input at 200/ac??

[hobbyfrmr]

I pretend i am a big farmer with newer more
efficient machinery and high land rent. I have
land payments 40/ac, plowdown is 100over 2
years, seed costs are 35-60, cost of 2 passes cult
then again planting, rodweeder, post emergence
harrowing,thats 45, swath 10, combine 20, auger
and hopper bin leases 5. I think that gets me to
205/ac. Its fast and rough math sometimes i get
to keep and extra $40/acre here and there. I
calculate high so i dont miss anything.
I pay my part time employee 20.00/hour to
drive/fix tractor/combine. I do all the
undesireable stuff. Someday there will be an
engine or transmission blowup on all this 30 yr
old shrapnel! So far no troubles like that. I do
buy lots of parts. More than ever from
dealership i am too stupid/rammy to make
things fit/work. I take the old one off and
replace with oem then it fits! I do buy a lot of
diesel fuel and oil.changes.

[hobbyfrmr]

Once in 2007 i sold cps white wheat for 24.50/
bushel. Discounted .50 for tough mc. One
tridem was $29800. I am a firm believer that
every now and then , the sun shines on a dogs
ass!.
Since then i have seen no bid for a year on feed
barley and feed wheat amd painfully slow
movement on milling wheat.
Know your buyers in the times of high prices/big
cheques end users are usually not prepared to
pay over budget price so they are forced and
can get a little resentful if they think the grain is
being held at ransom. I do not sympathize much
but they do think like that at times.
Fna had an alignment with an accounts
recievable insurance company. AG Empower or
something like that. They do creddit.checks and
a/r insurances. Spend $500 to cover a btrain of
$25.00 wheat is good risk mamagement. Again
these are all fast and rough numbers call them
for more accurate details.

[hobbyfrmr]

Here is the website. I was called MarketPowerAssurance.

http://www.fna.ca/en/products-and-services/mpassurane.

Get your wheat samples tested at a lab for protein and falling number, so you know what you have.Send uniform samples out to your prospective buyers. If you are willing to take a chance, and wait for your price, leave them a firm offer
on volume you will sell at $25.00/bushel. In the meantime, get your buyers credit checked with MarketPower Assurance. You will then know if they are good to sell to. When they come to buy, you know they qualify, then you fill out a form and insure the value of your transaction. Then you invoice buyer for the value of the transaction of the sale.
Do no be lulled into comfort if buyers tell you they are licenced and bonded through the CGC. No Matter, think of the Newco burn. Not funny.
So, spend some money, learn something about the people you are dealing with. Then, when its transaction time you can easily say yes instead of hangups and credit checks when its time to sell.
Just because you are a farmer doesnt mean you have to be a clumsy businessman/woman. Do the checks, insure the transactions. You will learn something. By spring of 2013, you will realize these are the tools you need in any world business transactions. You will have them and be practiced with them!

Then you can buy me a beer. Because you will have been paid for your organic grains. There, I just spilled my guts, I gave away the caramilk secret!!Good thing this is only for organic farmers. The other guys can grow high yeilds, just dump it through the grates and hope for the best! Thats what I used to do.

[Burbert]

Lottsa the scum involved in the industry
source their products in the common runna
the mill market, grinder, then sell as
orgasmic. Lyin an cheating rule
boys/girls NEVER EVER fergit that. You
know how ya kin tell when its orgasmic, ya
find worms/weavels/hair/mouse poo etc in
the product, now thats orgasmic!

[pourfarmer]

Thanks Hobby Farmer, great information!
Good luck with the remainder of your
harvest!

[hobbyfrmr]

Thanks and to you as well.