With approval from the AdFarm North Dakota farm marketing committee, Cooperating Farmer Fred Lukens sold the remaining AdFarm pinto beans for 24 cents per pound on Monday morning, March 1st, 2010. Unfortunately, the break-even price on the remaining AdFarm pinto beans was 29 cents per pound. The AdFarm N.D. farm marketing committee faced these realities:
- Free storage from Larimore Bean, owner of Sharon Bean receiving station, ended on March 1, 2010. Storage would be charged at .1¢/month after March
- Despite apparently friendly market fundamentals, the pinto bean market did not have a significant post harvest rally. The Larimore Bean price peaked at 27¢/lb. in early January.
- 2011 new crop contracts were offered for a short time @ 23¢/lb. in late January. These contracts sold out quickly.
- Despite rumors to the contrary, potentially market moving USDA “food for peace” tenders expected in late February did not materialize.
Lukens projected an approximately $1,900 net loss ($27/acre) for the 2009 AdFarm N.D. crop. Exact per share values will be calculated at for the early April AdFarm N.D. farm annual meeting. Marketing Committee Member Carina Emil says, “It’s been a long time since our AdFarm N.D. farm has lost money. This is a learning experience for all of us, and we learn when we win and when we lose. To keep this in perspective, we should remember that if we average our AdFarm N.D. farm income and loss for the past two years, we show a $4,300 profit. Pinto beans were the right crop to grow this year. This time, Mother Nature and the markets worked against us.”
The AdFarm N.D. farm an educational investment of AdFarm and its employees. In 2009, 130 employees purchased an average of slightly more than 4 shares at a price of $25 per share. This year we experienced the down side of taking a risk.
Our North Dakota Farm Partner Fred Lukens and his family, have their own blog about farming on the prairies. Visit the Griggs Dakota Blog for pictures of the AdFarm pinto bean crop from seeding to harvest.
2009 is behind us and we’re looking ahead to 2010.
Your thoughts on our 2009 crop marketing decision?
Ideas for 2010?