29 Sep 2021

Crop farmers App revolutionises profitability gain (in relation to SAFEX Maize Price, CBOT Corn Price, Wheat Price and more)

“Everyone knows there is an ideal time to sell, but nobody knows when it will be.”

With the CropsProfit platform, you as a crop farmer get a personal marketing sidekick in your pocket. You’ll be able to plan your season for success and manage transactions in relation to live market price changes for greater long term success.

Why does CropsProfit perform so well in relation to SAFEX/CBOT/Wheat price fluctuations?

Set your own profit goals

When selling their products, almost all businesses outside of farming operate with a profit goal in mind, and there are good reasons for it.

Crop farmers are inherently price takers, which means the prevailing prices in the market must be accepted. This has led to the mistaken belief that crop farmers are not in control of their pricing.

With CropsProfit, we decided to help crop farmers with an easy way to set their own profit goals and simplify the typically complex, paperwork-heavy and often unproductively emotional marketing process.

If your crop farm is at least as productive as the average crop farm producing the same crop, and your profit goals are set realistically – there will be a time where your crop marketing plan will be able to make a profit.

In summary, a major reason CropsProfit works so well is that profit goals are at the core of the marketing plans the platform helps you create.

Bigger marketing window.

Because nobody can accurately predict when that profitable time will be, it is important to be in the market for as long as possible and to do transactions when you reach your profit goals.

For all the insights compiled visually, download the eBook and unlock the app’s free trial by clicking on the banner below:

 

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Profit margin hedging made easy (relates to SAFEX maize price; CBOT corn price; wheat price and more)

Profit-margin hedging is the simultaneous hedging of inputs and outputs of a production process. [1, p.379]

Using profit-margin hedging at its core, CropsProfit has a unique approach to crop pricing.

Regardless of whether you’re dealing with the SAFEX maize price, CBOT corn price, or wheat price, CropsProfit calculates a net profit at the live market price by taking all the costs and other variables for a season into account. This data is then compared to your Profit Goals. From there, CropsProfit’s simulation suggests a transaction when your profit goals are reached!

From now on, when you look at a crop’s market, you’ll really know what is going on and how it relates to your farm’s unique situation.

How CropsProfit performed in a long term case study

To put CropsProfit’s simulation technology to the test, in a long-term case study, a farmer’s real data was captured and CropsProfit simulated their marketing and calculated the average net profit per hectare of White Maize over 7 seasons. All this is also in relation to the lowest profit goal, which is 20% per hectare above each season’s total break-even cost.

For the 7 consecutive seasons, CropsProfit caught the curveballs over the difficult time, scoring 21% more profit on average – meaning the profit goal of 20% was surpassed and 41% was achieved. For a more detailed look at the study, you can go to the Proven Results page on the website.

Conclusion

Regardless of whether you’re looking at the SAFEX maize price, CBOT corn price, or wheat price, by using cutting edge technology that simplifies your process while focusing on the pursuit of a specific goal, you are more likely to achieve it.

Much like the well known adage – “Aim for the moon. If you miss, you may hit a star.”

Would you like to know more?

Download the eBook and unlock the app by clicking on the box below:

 

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Reference

1.Kee, D., & Kenyon, D. E. (1999). Hog Profit Margin Hedging: A Long-Term Out-of-Sample Evaluation, Paper presented at NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management, Chicago, IL. Retrieved from http://www.farmdoc.uiuc.edu/nccc134