CWRS Sales Strategies and the Bottom Line

We are strong believers in the value an effective marketing plan can bring to your operation.

Today, I will use the Saskatchewan Ministry of Agriculture Crop Planning Guide 2023 to provide an example of the impact of grain marketing on returns per acre.

The spreadsheet below uses the Crop Planning Guide yields and expenses for CWRS in the Dark Brown soil zone.

The point of this exercise is to demonstrate how changes in realized grain prices impact the bottom line.

We use two prices from the 2022-23 crop year:

1. Our index yearly average price used for our analysis

2. Our Crop Year Take-Profit Sell Signal price.

Our price is 6% greater than the crop year average price at the time of publishing.

Below is the spreadsheet.

Rows are hidden to accommodate this publication.

The first column uses an equal monthly percentage sale strategy with a crop year average price of $11.31/bu.

The second column uses the low end of our Take-Profit Price Target range.

Notice the difference in the following:

Return over Variable Expenses increase of $36.76 or a 15% increase.

Return over Total Expenses increase of $36.76 or 395%.

In this example,

a 6% increase in price results in the following:

• 15% increase in Return over Variable Expenses

• 395% increase in Returns over Total Expenses

Effective grain marketing is critical to your operation.