Ben Brown Urges Better Crop Marketing Strategy

By Scout Nelson

As crops progress toward maturity, South Dakota farmers are urged to think ahead—not just to harvest, but also to marketing strategies that follow. According to Ben Brown, a leading agriculture economist with the University of Missouri, timely planning can make a big difference in profit margins.

“One of the things that is easy to forget about is the storage costs that you’re paying to keep those soybeans, those physical soybeans, now an extra four to five months,” said Brown, who made his comments following a brief upward bump in the soybean market, pointing out the inevitable costs of hanging on to the crop long after it’s brought in. “And at least in my calculations that completely covers the rally in the market that we’ve seen.”

“Have defined periods of ending and an exit strategy to be able to get out [of the market],” said Brown, “because if you don’t, then you just keep rolling on, and on, and on, and on, and end up with product that you’re storing and paying large storage costs on for a longer period of time.”

Looking ahead, Brown predicts summer may bring higher soybean prices, but they might not last. He recommends options contracts as a flexible tool. “You can lock in prices now and still benefit if the market improves,” he added.

Farmers can learn more in Brown’s feature on the podcast The Soybean Pod, now available on most platforms. His message is clear: plan ahead, manage risks, and avoid unnecessary costs to make the most of every season.

Photo Credit: istock-ds70