Mindset

Complacent or Compliant on Your Plan for 2014 and Beyond?

triangleBeing complacent is being satisfied with how things are and not wanting to change them. Being compliant is being willing to and agreeing to change.

The Ag Market we have experienced in the last 3-5 years, being complacent may have still worked.  In these last years the market and revenue was on an upswing, we had short crops and higher revenues.  American Farmers have experienced the biggest corn and bean crops in history, however, with the declining value (market prices) and margin potential, we must say “good-bye” to complacency and “hello” to agreeing to change and being compliant!

One of my favorite quotes is “Insanity:  doing the same thing over and over again and expecting different results.” by Albert Einstein

 

If we don’t quickly become compliant and start doing those things that make a difference we will not find profitability in 2014, 2015 and beyond.

What can we do?  Minimize our losses!

  • Keep an eye on your breakeven price
  • Have a proactive marketing plan in place
  • Re-invest wisely
  • Negotiate cash rent prices
  • Watch debt and take advantage of lower interest rates
  • Have a risk management plan in place
  • Most importantly, out produce those around you

With profit margins becoming tighter (crop input costs moving up and crop prices moving down) the farmers that are willing to be compliant, manage their margins, and make a plan for the future are the ones that can expect success, even in a volatile world.

Thinking about maximizing the opportunities the market gives you, keeping an eye on break evens, minimizing mistakes and healing mistakes that have been made, will put you ahead for the coming years.  A $50 mistake from the past is really like a $150 mistake now, because lost margin is creating a negative impact. Farming is a tough business and I think all business out there struggle from time to time.  How will you work through these struggles?

There are four components of profitability that are within your control:

  1. Production
  2. Crop Insurance
  3. Grain Marketing
  4. Financial Analysis

We specifically tailor these four components to each individual farming strategy.  Let us work with you to create a positive impact on your overall operation for 2014 and beyond!

Is Your Tackle Box Full?

With below freezing temperatures and a fresh blanket of snow it must be ice fishing season. Time to put on the long underwear, Kick on your boots, pull down your stocking hat, and grab your fishing rod and bait.  Ice fishing is a lot like farming.  Every year there are new tools and technologies that come out to make your time spent fishing, or farming more productive.  Every year brings great anticipation in where and when the fish will be biting, but one thing is always certain, year after year it’s never the same.  To be an exceptional ice fisherman or woman you need to have several lures in your tackle box.  Similar to farming, you need to be willing to change when something is not working. I’m Jim Dumdei with Corn Capital Innovations and we are here to bring the right lures to your operation, from production to crop insurance, or grain marketing to financial analysis, we will make sure your tackle box is fully loaded to help you land that big one you always hear about. See you on the ice!

Get the latest fishing report here!

Follow us on Facebook and Twitter to get the latest reports throughout the season along with our own fun fishing photos!

Fantasy Farming – The Seed Dream Team

The smell of fall is in the air and that means two things- football and harvest. Many of you are also excited to have kicked off the fantasy football season. With 30 million people having their drafts over and teams picked, you hope for the best this football season to win that large pot of cash at the end.

For some reason, it seems that no matter how much you know about the NFL football players and their stats from their previous season, what can seem like a perfect pick before the season starts, one small factor can throw everything off. Accurate, high-quality fantasy football projections are difficult to make, mostly because there are too many variables involved that can make or break a season. What can be even more frustrating is your competition picks their winning team based off the uniforms and their favorite colors and win! How does this happen? How can a plan that seems so perfect by looking off of performance last year flop on the ground?

We see this same thing year after year when farmers put together a crop plan that seems to be the seed dream team based off of their yields from the current season and what new rookie has the most hype as a new player. What we need to remember is that there are no two growing seasons alike, just like there are no two football seasons that are the same. There are numerous factors that go into play for a successful season- this is why we see such varying results from harvest to harvest and from field to field. We are seeing more volatility in the farming industry more than ever before, so it is not uncommon for us to be looking for the perfect answer on how to grow a great crop.

The perfect answer doesn’t lie within the perfect seed variety, but what it takes to consistently get better and have the best chance at earning the largest pot of money in the end is management and execution.  Just as it takes a great manager to form a great football team, skill alone won’t win it. We can’t control the weather, market prices and adverse growing seasons. But what we can control is how we plant the crop, manage the crop and execute strategies, which in turn spreads our risk. No matter what happens after that first kickoff is made, is it up to the grower to finish the year strong and do everything in his power to go after the big win. Even though this is not a foolproof solution, it is still the awareness of your management practices and the drive to be better that will have the largest long term impact on your operation.

As we have watched things gear up for this special time of the year, there has been much anticipation to see what the performance actually looks like. Everyone has seen their fair share of bumps in the road, but every team depends on the manager to guide them in the right direction, and it’s his job not to give up after the star player gets hurt. You know there is more potential in a team when he has the ability to look at the different strengths of each of his players and makes management changes as he needs to throughout the season to get the team to perform to the best of their ability through the end. After so long in the league, different variables start to take effect and the game starts to wear on each player. Same goes for the lifespan of a hybrid. In the past we used to see a certain kind of seed on the market for decade, now that lifespan has decreased to an average of a couple years in the field before it’s taken off the market. Change is inevitable and players will come and go. It’s up to the manager to make adaptations needed to move forward and continue to grow. What experts are you listening to as you create your 2013 game plan?

Clear Your Mindset from 2012 – 2013 Will Be Different

The 2013 Farming Season is already here, do you believe your combine is your first tillage pass for fall tillage in the preparation for spring?  We do!

Everything you do, right now, this fall, will impact your season for next year.  We feel the road map to success is being prepared.  Even before you combine, having a crop plan in place is the most important part of your future.

Your plan:  Consider what expectation you had going into this 2012 season.  Now that it is at the years end what you accept or don’t accept with in those expectations is how you will feel going into 2013.  Will you go into the New Year feeling positive about the 2013 crop?  Here a few possible expectations for next year’s crop.

  • Another year of drought, wind, & hail

OR

  • Weather you can work with and the potential to grow your best yields ever.

Make sure that your plan includes Risk Management, Grain Market Protection, and Crop Production.  Make sure you are in the game, ready with no surprises.  Don’t be left out of the game with many surprises, they can be expensive!

You have to expect the unexpected; after all you can’t predict Mother Nature.  So go into 2013 with a clear mind, be flexible and remember it is better to re-educate yourself on the things that are available to you (crop production, crop insurance, grain marketing, financial analysis)  versus to re-assume the decisions that you made.  Stay ahead of the curve and surround yourself with people that are positive and working with your to hit your yield goals.  You have to have a crop production plan that is based on growing the best crop possible.  Your risk management plan is for protecting against the worst case scenarios that Mother Nature will throw your way.

Contact Us or call 320-523-2252 to find out all that we can assist you with for the remainder of this year and of course 2013 as it is already upon us!

My Crop is Lost, What Do I Do?

If this is your field, what are the emotions going through your mind right now?

Storm Damage is both financially and emotionally stressful and we understand that; it is our job to help farmers like you plan for the best and worst scenarios.  We encourage every farmer to protect yields at all costs.

We can’t undo what Mother Nature has already done.  You have to do everything you can to get this crop processed, harvested and not to let this year’s crop influence next year’s crop.  You have to do everything in your capabilities by the end of this year to be set up for the coming year.

“Never give up on a crop unless it is damaged below the thresholds where putting additional dollars into the crop will not surpass expected crop revenues.”  says Steve O’Neill, Chief Executive Officer and Owner at Corn Capital Innovations

Is this a disaster? Yes, it’s terrible but we can plan for these types of events!  If you are asking yourself, “why me”?  You have to realize that it happens to someone every year, everywhere, in different places.   If not you this year or last year, maybe it will happen next year.  Or maybe you have already been through it?

The time to review your risk management plan is not after the damage is done!  You can’t predict the future, so be prepared!  We would like to work with you now to set up your plan for the future.

There is a popular adage often attributed to Benjamin Franklin, the father of time management, “Failing to plan is planning to fail,”

Being prepared is to make ready (Mind Set)

To put together various elements (Crop Insurance)

The condition of being prepared (Risk Management)

Not only is there volatility in weather but there is also volatility in the markets.   Corn Capital Innovations can help you with both.  Do you have a question about the risk management options available and how they can benefit you?  Leave a comment below, or contact us today.

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