Date of this Version
Cornhusker Economics, March 15, 2000, agecon.unl.edu/cornhuskereconomics
In the recent 2000 Corn-Soybean Expo Marketing workshops participants were given an opportunity to market corn and compare their decisions with others. The workshop is described below, along with some of what we learned. Participants were asked to decide whether they wanted to purchase CRC multi-peril crop insurance and how much corn they wanted to cash forward contract from early April to late July for harvest-time delivery. For workshops in predominately irrigated areas, participants were given past corn yields for a 500-acre farm with a 10- year average yield of 165 bushels per acre based on actual yields from a University of Nebraska farm near Clay Center. Corn production that wasn't forward priced would be sold at harvest and any shortfall of contracted production would have to be purchased at 5 cents above the harvest cash price. Cash forward prices were announced to participants two weeks at a time up to the end of July. Cash forward commitments were collected before the next price was announced. The actual year was not announced until harvest time. At that time the yield and harvest cash price were announced, using 1990 prices and yields.