The AdFarm North Dakota Farm marketing committee met via conference call this morning to discuss and prepare their marketing plan for the 2009 AdFarm Pinto bean crop. Before agreeing on the plan, the group heard the following from Cooperating Farmer Fred Lukens:

1. First fields of pinto beans on Lukens farm have been harvested. AdFarm field will be harvested next.
2. Average yield on first fields is 1,800 lbs. per acre.
3. Centrol crop scout predicts that AdFarm field will exceed 2,000 lbs. per acre.
4. Pinto bean market appears to be in “harvest low” with prices at 24¢ and 25¢ per pound at Sharon Bean and Central Valley Bean respectively.
5. U.S. pinto bean planted acres are down 5% this year, carryover crop is small, and an “average” U.S. crop is predicted.
6. Mexico’s pinto bean crop has been hurt by drought and will be short.
7. Experienced pinto bean market watchers believe that market has upside potential to 30¢ or higher after January 1, 2010.
8. 800 lbs. per acre of the AdFarm crop was contracted @ 25¢ back in February 2009 with Sharon Bean.
9. Central Valley Bean is paying freight from Aneta to Buxton, ND (approximately 60 miles). Sharon Bean (10 miles from Aneta) is not paying freight.
10. Both Central Valley Bean and Sharon Bean offer free storage of pinto beans as follows: Central Valley Bean to February 1 and Sharon Bean to March 1.
11. At a yield of 1,800 lbs. and a price of 25¢ per pound, the AdFarm crop should earn a profit of approximately $50 per acre. (The 2008 AdFarm crop was a record $74 per acre net profit.)

A good time to roll the dice

The group agreed on the following plan:

1. Deliver the 800-pound per acre-contracted portion of the crop to Sharon Bean.
2. Deliver the balance of the crop to a combination of Sharon Bean and Central Valley Bean as logistics dictate.
3. Watch the post-harvest price trends with the intention of selling the balance of AdFarm pinto beans early 2010 for a price at 30¢ or higher.
4. Conduct a follow-up marketing committee call at an appropriate time.

As Marketing committee member Jason Laqua summarized the plan: “Seems like a good time to roll the dice.”

Rain and cold weather have delayed the AdFarm pinto bean harvest. With current weather forecasts, Lukens expects harvest to resume the week of October 19.

Follow the crop at: GriggsDakota.blogspot.com