GFM Network News

Prepare To Adjust 2010 Plans

“Cost per bushel grown” is also becoming an increasingly important measure of value creation. It isn’t in PMG’s software yet, but it’s coming. Even if you have a business plan on paper, be prepared to make revisions and maybe make a couple more contingency plans. We’re looking at another roller coaster ride for 2010. The […] Read more

Futures Failing For Price Discovery

Money-flooded futures markets could be throwing a wrench in your marketing plans. If you’re a canola grower looking for price discovery, you’re out of luck because convergence between cash prices and futures has at times become unreliable. Lack of convergence has left even the most astute, market-minded farmers scratching their heads. Futures markets are, by […] Read more

Hold On To High-Quality Durum

If you priced all your durum in the A contract this year, you’re probably going to move about 65 per cent of it. To ease your cash flow, you could consider taking a wheat board advance on your remaining durum. Ouch. Western Canadian durum producers, inundated with carryover stock, are facing limited delivery opportunities in […] Read more

Analyze Before You Downsize

With a 20 per cent decrease in land comes a 20 per cent rise in fixed costs. When you raise the fixed costs, you raise the breakeven yield and the breakeven price. Basically you’re just piling risk on top of risk. Spring frost and a rough harvest in 2009 have pushed the coping skills of […] Read more

People Still Need To Eat

Don’t worry too much. Monitor changes and stay on top of your costs and you’ll be well positioned to take advantage of the opportunities in agriculture. Last winter as financial markets crashed and the number of jobless in Canada hit eight per cent, agriculture held its own. Agriculture, it turns out, is more recession-proof than […] Read more

In a market downturn, you want to work with people and companies who will take responsibility for their own situations and honour their contracts.

“We’ve seen a clear indication that transactions with larger entities have been honoured far more consistently than many of those made with smaller processors.” — RON FROST In turbulent times, you want to take a hard look at any company you do business with. “The downturn is negatively impacting contracts,” says PMG marketing adviser Ron […] Read more

We’ve underestimated the impact of energy on grain and oilseed prices. With oil prices down, demand from the biofuels sector has slumped. And it shows

A weak energy market and worldwide drop-off in demand are making it tough to arrive at fair value for a bushel of grain. Crude, floundering around $40 a barrel, is a clear sign of a staggering economy. Biofuel markets have taken a nose dive. Just last summer and fall, the biofuel industry anticipated that over […] Read more

Your neighbours are working the same soil as you and have the same weather, but their business goals and their break-evens will be different — maybe much different

“You’ll benefit from identifying even a few short-and long-term goals and getting them down on paper. —ROY ERICKSON. Midwinter is a good time to put some thought and detail into your business plan. Clearly defined goals can help you keep your business on track this year. PMG AgCoach Roy Erickson says, “Many producers have ideas […] Read more

Here a few ways to improve efficiency — and returns — for your farm

Gary Pike is president of PMG. PMG provides management, marketing, business planning advice and coaching to members who represent 2.5 million acres in Western Canada. To find out more about PMG and how to become a member, visit www.agcoach.caor call us toll free at 1-877-410-7595. Global financial markets are still quaking. Wheat is hovering around […] Read more