As crops move through pollination, yield estimates get more accurate; that can have an impact on our financial situation and marketing decisions. When estimating your farm’s breakeven point, you start with your average yield numbers. As we move threw crop development, we begin to get a better idea of what our yields will actually be, and that helps with financial assessments.
Daniel Taylor, with Agri Financial, says “As you walk your fields and get a better idea of what your 2021 production will be, you can update your balance sheet. One thing you may notice is that as your yields go up your breakeven point goes down.”
Those updated breakeven numbers can have an impact on your marketing decisions for this fall. “It may allow you to be more aggressive in your marketing plans. It can also help with the decision on whether to store part of the crop or sell off the combine at harvest,” states Taylor. He adds that keeping your financial records up to date will give you a more accurate picture of your operation as well as help your lender better assess your needs and credit worthiness.