Episode 42 - How can Crop Marketing and Crop Insurance go together?

 Join Riley for a fresh brew of ag insights on this weeks episode of Morning Coffee and Ag Markets. As he's joined by Dr. Hunter Biram and special guest Dr. Andrew McKenzie to unpack the critical intersection of forward contracting and crop insurance in today’s volatile ag markets. Drawing from recent findings, the discussion explores how combining forward contracts with Revenue Protection (RP) crop insurance can stabilize farm revenue, even when yield shortfalls trigger non-delivery penalties. Learn how strategic risk layering helps producers confidently market their grain while safeguarding against both market and production risks. Don’t miss this practical, research-backed conversation on managing uncertainty in agriculture. 

Transcript

00;00;08;10 - 00;00;10;24
Riley Smith
But anyway, y'all ready to get going?

00;00;10;27 - 00;00;12;19
Dr. Hunter Biram
Let's do it.

00;00;12;22 - 00;00;32;01
Riley Smith
All right. Well, good morning, good morning. Welcome to another episode of Morning Coffee and Ag Markets with your host, Riley Smith. And today we got a special guest all the way from Fayetteville, Arkansas, at the University of Arkansas. Dr. Andrew McKenzie. You're the, aren't you, the head of the Fryar Center right now?

00;00;32;03 - 00;00;41;22
Dr. Andrew McKenzie
Well, actually, Lanier, who's our department head, Lanier Nalley, he is actually the official head. I just help him in a sort of an associate director role.

00;00;41;25 - 00;00;58;19
Riley Smith
Right. And he's also a professor, and he was also my professor when I was up there as well. So, this is pretty cool to have him on and do an episode with him. And then right beside me, I got my left hand, right hand man. Dr. Mr. Professor, Hunter Biram.

00;00;58;22 - 00;01;00;07
Dr. Hunter Biram
Yep. Just call me Hunter.

00;01;00;09 - 00;01;02;02
Riley Smith
Just call me Hunter, from Floral.

00;01;02;06 - 00;01;06;16
Dr. Hunter Biram
From Floral. The big town. The big grand town of Floral.

00;01;06;18 - 00;01;19;04
Riley Smith
But anyways, so I'm going to kind of just hand the football off to these guys and let them run with it. I'm going to be in the background and, just kind of cover the, cover the options.

00;01;19;06 - 00;01;39;07
Dr. Hunter Biram
Well, and at any point, if you have questions, I think you'll have some really good questions about this topic. I think it's super interesting. But, you know, today we're going to focus mostly on, some work. That, Dr. McKenzie had been, leading a graduate student in. Oh, man. When was that? That's almost a couple years ago now, whenever we started on that.

00;01;39;07 - 00;01;55;05
Dr. Andrew McKenzie
Almost a couple of years ago, yeah. Chandan, and, you know, you really helped a lot on this stuff, Hunter, I mean, I don't want you to minimize your role, because you brought your expertise in on the crop insurance side, which really added to this, so.

00;01;55;08 - 00;02;19;14
Dr. Hunter Biram
Well, I appreciate that. Frankly, I think it's a very interesting piece, and I think it's very relevant for our stakeholders, for our farmers and, the, the topic of discussion today is surrounding forward contracting and crop revenue insurance. And so the question is, can you use these two tools together in a risk management strategy, and why would you ever think about that?

00;02;19;14 - 00;02;40;16
Dr. Hunter Biram
And so, it might it might be a good idea, Andy, for you to go ahead and kick us off and just give us a brief primer on the local cash marketing and maybe the difference between that and futures, because, I mean, you're very knowledgeable in both areas. Go into a little bit of forward contracting and locking in price, price risk management, and then we'll go off and then we'll go into, the insurance side of things.

00;02;40;18 - 00;03;04;21
Dr. Andrew McKenzie
Yeah, sure. So I mean, farmers, so I'm thinking to begin with, this is before harvest time, what I call the pre-harvest marketing window. And that's basically where we are right now, right? And so from a farmer's point of view, if he wants to sell his crop before harvest hits, and as we all know typically harvest is probably the lowest priced time of the year.

00;03;04;23 - 00;03;38;19
Dr. Andrew McKenzie
So you know, to try to get themselves a better price, a higher price, it's worthwhile for farmers to consider either hedging, using futures, or using the forward cash markets to lock in a price with their local elevator or co-op, whoever that may be. And so the difference between the two, basically, is they both, in a way, establish a price ahead of time and whatever the market is at on the day that you get into either contract, that's the price you lock in at.

00;03;38;22 - 00;04;00;20
Dr. Andrew McKenzie
So you, you know, you've got that decision to make. So what is the difference? Well, if you do the futures hedging, you have to set yourself up a brokerage account and you have to maintain amount of money in that account in case you make losses on the futures side. And so there's a few hurdles and steps that you have to go through in order to do futures hedging.

00;04;00;23 - 00;04;31;10
Dr. Andrew McKenzie
And I think in a way to me, and probably actually what more farmers do is use the forward cash market because it's a simpler tool to use. It's more straightforward. It's just locking in, negotiating a contract with the local elevator or, as I said, getting a price off of it. And whatever the forward price is that the elevator's offering is in a way directly related to the futures anyway. When the futures is high, the forward contract prices are going to be offered at a higher level.

00;04;31;13 - 00;04;56;05
Dr. Andrew McKenzie
You know, vice versa. When prices come down, all contract prices will be offered at lower levels so that they're highly correlated. And, we've talked about this many times, Riley, in class, but the difference between the two is the basis, right? And so that basis, the difference on what the elevator is charging or offering is a price versus the futures, is local supply and demand in their local markets.

00;04;56;07 - 00;05;23;22
Dr. Andrew McKenzie
But you know, the futures and the forwards will move together. So, I think, what are the other key differences? Well, if you get into a forward contract, the contract that you get into is not standardized. So, on the futures, there's so many bushels you have to get in at, like 5000 bushels per contract, whatever amount of grain you want to sell to an elevator, you can tailor it on a forward contract.

00;05;23;24 - 00;05;51;08
Dr. Andrew McKenzie
So it's less standardized. So it's more flexible that way. The other... the downside is once you get into one of these forward contracts, you're sort of legally obligated to then deliver the grain on whatever amount of grain you've agreed to at the price you've set. If your futures hedge, it’s a weird mechanism, but you can offset or get out of your contract by buying it back at any point in time.

00;05;51;08 - 00;06;11;27
Dr. Andrew McKenzie
You initially sell it, and then you buy it back. So in that sense, if you don't like what prices are going to do, or you don't think you're going to have the bushels, the futures gives you a little bit more flexibility to get in and out of the positions. So in that sense, there's not the production risk

00;06;11;29 - 00;06;30;09
Dr. Andrew McKenzie
If you forward contract and you don't make the bushels and you can't deliver, you got production risk. And that's where the elevator will hit you up on a fee, if you can't deliver. So what is that fee? Well, it's going to vary depending on the elevator as to how much they charge per bushel. But it's not going to be a huge amount.

00;06;30;12 - 00;06;55;29
Dr. Andrew McKenzie
But on top of the, I guess, what I call the administrative fee to manage the cancellation, whatever the market ends up as, you could be liable for that difference between the price you locked in at versus where the market is at harvest time. So, for example, you lock in, it's $5, and then you don't have the bushels and the market ends up at six

00;06;55;29 - 00;07;24;15
Dr. Andrew McKenzie
at the local cash market price of the elevator, then you're liable for that dollar difference on the per bushel amount that you contracted and did not deliver. So if you’re short 10,000 bushels, that's 10,000 bushels times a buck, that you're also going to be charged for non-delivery. So there's definitely a potential risk if prices go high, and you locked in at a lower level with a forward contract,

00;07;24;17 - 00;07;51;11
Dr. Andrew McKenzie
and you don't make the production. So that's the risk on the forwards. So you know, why do it at all? As I say, the point is to try to get a higher price, because often what we find is, before harvest, that's when prices are at their highest levels. So, you know, if you look on average, over a 20-30 year period, you typically see prices higher in May, June, July.

00;07;51;14 - 00;08;13;00
Dr. Andrew McKenzie
And I'm thinking, you know, both corn and beans. So to show this picture. And so that's your opportunity. So obviously you can't sell at harvest at those levels. You’ve got to do it on a forward contract or the futures. So as I said, I, to me, the forward is, although you have this production risk, it's an easier thing to do.

00;08;13;02 - 00;08;33;17
Dr. Andrew McKenzie
You don't have to manage the futures positions yourself. In a sense, you've given over that role to the elevator. And in a way, you're paying him a little bit of a fee to take that on for you. But it simplifies the whole picture, in my mind. And the other advantage on the forwards, which I forgot to mention, we talked about basis, right?

00;08;33;19 - 00;08;56;23
Dr. Andrew McKenzie
If you do get into the futures hedge at the end of the day, although you locked in a futures price, because you're selling your grain in this local market, you do have to adjust the futures for what the basis ends up as. So you still have basis risk. You do a forward contract, there’s no basis risk because you've already locked the local cash price in. That's it.

00;08;56;23 - 00;09;02;20
Dr. Andrew McKenzie
It's done. And so there's no more price risk, once you do a forward contract.

00;09;02;22 - 00;09;05;13
Dr. Hunter Biram
I'll tell you what, Riley, does it feel like you're back in class?

00;09;05;19 - 00;09;31;14
Riley Smith
A little bit, sorry, my mic wasn't turned on. You know, what's interesting is it's like, especially since we've been doing he's talking about basis, and we do our basis map on the newsletter, you know, and how negative basis has been for the last, what,
 six months? Yeah. I mean, the well, the last two have really been up in the positives.

00;09;31;16 - 00;09;43;17
Riley Smith
You know, most of everybody's, you know, plus thirty. But for the most part. But, I mean, you still look at West Memphis, you still look at Des Arc, you look at Stuttgart. They're still all in the negatives on their basis.

00;09;43;23 - 00;10;04;18
Dr. Hunter Biram
Yeah. And that's probably largely driven by, what's happening on the river, the Mississippi River. You know, some, some traffic issues can happen and, other issues with even higher river levels. I know we talking about low a lot, but the high also impacts it. You know what, Andy, going back to just the basics of forward contracting, you talked about that price upside risk and that, you know, paying that dollar difference.

00;10;04;21 - 00;10;18;28
Dr. Hunter Biram
What about price downside? So let's say, you know, we're looking at a $4.50 booking and maybe it drops down to $4. You know, more of what would be in this kind of price environment or, or a potential that could be in this price environment. What would happened then with non-delivery?

00;10;19;00 - 00;10;52;02
Dr. Andrew McKenzie
So, in that situation, in effect, it's really, you can cancel the contract still and you won't be obligated for the additional charge. And often in effect, it could be that the elevator will actually pay you the difference on the on the lower price. Because really, right, you as a farmer could buy off the hook of the elevator at the cheaper price and then deliver those bushels on the forward contracted amount that you didn't have yourself and get that higher price because you still got that locked in higher price.

00;10;52;04 - 00;10;59;14
Dr. Andrew McKenzie
So you can like, it sort of works back in your favor from the farmer side in that situation.

00;10;59;16 - 00;11;09;08
Dr. Hunter Biram
That's interesting. So, so talk more about that then. So talk about how, you know, this this idea of a farmer being paid. That sounds kind of interesting to me.

00;11;09;10 - 00;11;12;01
Dr. Andrew McKenzie
Sorry, repeat in terms of what, sorry, again, Hunter?

00;11;12;03 - 00;11;17;23
Dr. Hunter Biram
Yeah. For, so you mentioned that a farmer could be paid, right? Isn’t that what you said?

00;11;17;26 - 00;11;37;27
Dr. Andrew McKenzie
Yeah. Yeah. And, you know, it depends on the elevator, though. As to how this works, right. And so you, and this is something the farmers need to look at carefully when they get into contracts. What are the finer details on what the obligations are on both sides of the party and so forth? Often what will happen though, is yes, the elevator rather,

00;11;38;02 - 00;12;02;04
Dr. Andrew McKenzie
what they'll try to, rather than hand out a check in the situation we just described, they may try to perform, what is called roll his obligations to the following harvest time and lock in a price a whole year again later, and then try to deliver. And hopefully, the farmer would have the bushels the next time around to deliver and wouldn't have the non-production side.

00;12;02;06 - 00;12;07;26
Dr. Andrew McKenzie
So that's what, that would be the elevators preferred, being in that situation.

00;12;07;28 - 00;12;33;26
Dr. Hunter Biram
Well, that's really interesting. So yeah, that's, you know, this is local cash marketing that we're talking about. You know, Andy did talk about the futures and options, but just emphasizing that we're talking about the local cash marketing, for right now. I'll move into the insurance side of things. And the way that I think about how we can use insurance and local cash marketing is, you know, really insurance provides this, additional layer of protection.

00;12;33;26 - 00;12;51;05
Dr. Hunter Biram
So I think about this in terms of layers. I'm a big Shrek fan. That's actually one of my all time favorite movies. That's a fun fact about me. Probably interesting fact about me. But, you know, Shrek talks about, you know, onions have layers and, so there are definitely layers of protection here, for a farmer,

00;12;51;05 - 00;13;10;10
Dr. Hunter Biram
so you can say that, in a way, your revenue can have layers. And so we talked about just the price risk management, right, Andy? Like, you're going to lock in that price. And so, we're going to say, all right, I want to deliver x amount of bushels at a determined price. And so whenever you go to deliver those bushels you're going to get that price that you agreed on.

00;13;10;17 - 00;13;25;18
Dr. Hunter Biram
You sign on a contract, elevator signed on a contract, legally binding. You're going to get that price. And that is price risk management because it's like, well, you know, it's kind of hard to say right now because I know that we're really in more of a break even environment. But, you know, it's nice to set a target.

00;13;25;18 - 00;13;46;15
Dr. Hunter Biram
We want to have a target for profit. And, maybe breakeven is the target. So you want to try and find that price at about this time of the year, that's why we're talking about this now is, you know, we're looking into May, into June and even the early part of July, around that June acreage report, that USDA June acreage report, is whenever we start to see, the price starts to increase and then we start to see that price decrease.

00;13;46;17 - 00;14;06;14
Dr. Hunter Biram
And so, we want to lock that price in. But Andy said, what about production risk? Well, that's where crop insurance can come in. It kind of helps to manage price and production risk. So it provides that additional layer of protection underneath that forward contract. And so what that enables a producer to do, more or less, is to be more aggressive in their pricing strategy.

00;14;06;19 - 00;14;26;26
Dr. Hunter Biram
So maybe the farmer is worried about non-delivery. I know that whenever I'm out doing my extension talks in the counties, you know, I've presented some of our work to them before and they're like, man, I might be booking half. I might be booking half, or maybe even just a quarter of my expected production. Which tells me that they're pretty risk averse and you can't really blame them a whole lot because they're not entirely sure if they're going to have that to deliver.

00;14;26;29 - 00;14;50;00
Dr. Hunter Biram
But, with crop insurance, you're going to have that revenue guarantee underlying the production that you're planning to deliver on, if that makes sense. And on top of that, crop insurance also is based on the futures market. And so you'll get that guarantee from farm yield futures price. And then with what Andy's talking about with forward contracting it's farm yield cash price.

00;14;50;18 - 00;15;04;05
Dr. Hunter Biram
So you're kind of getting both sides of that coin by layering both of those. So with that, Andy, is there anything in particular, you know, with this idea, that I may have been leaving out?

00;15;04;07 - 00;15;31;06
Dr. Andrew McKenzie
No, I think you hit it pretty good, I think the key advantage of layering the revenue insurance with the forward contracting is as well, though, that situation we talked about like what I'm calling worst case scenario, where you lock in on the forward contract at a certain price level, you don't make the production, you don't have the bushels to deliver, and the price spikes up at harvest time.

00;15;31;08 - 00;15;54;13
Dr. Andrew McKenzie
It goes with supply and demand. You didn't have the bushels, there’s a shortage in the market. The price goes higher. The revenue insurance, I believe because you have the harvest option price, you can get that higher revenue coverage on that higher price level at harvest. So that's the real kicker on it. And that helps to cover that higher price that you're obligated,

00;15;54;17 - 00;16;19;21
Dr. Andrew McKenzie
remember, I said you're obligated on the difference between the forward price you locked in at, versus where the price gets to. So that, again, if it goes up above what you locked in, you're obligated on a dollar times the amount you didn't deliver. For the revenue insurance, it’ll help you cover that extra cost because it has the revenue part locked in at the higher harvest time price.

00;16;19;23 - 00;16;23;13
Dr. Hunter Biram
And that's the beauty of it, folks. Riley, have you got any questions?

00;16;23;16 - 00;16;24;28
Riley Smith
I'm just soaking it in.

00;16;25;01 - 00;16;46;00
Dr. Hunter Biram
Lots of soaking going on, for sure. Well, I mean, unless there's anything else, I think to me that the focus of this episode is just, let’s just introduce the idea, you know, and just emphasize how important it is to do local cash marketing right now. Like, be looking at those markets. And in our newsletter, we always put up those local cash bids at various locations.

00;16;46;00 - 00;17;00;24
Dr. Hunter Biram
As Riley mentioned, we put up those basis maps so that folks can, you know, figure out, okay, well, you know, here's what the board is saying. This is what CME is saying. Here's the basis, here's cash. Maybe I should go ahead and book. And there's a previous episode that we did where we actually had some price targets that were set up.

00;17;01;00 - 00;17;20;07
Dr. Hunter Biram
Based on your plan, Dr. McKenzie, based on that, five step marketing plan. And so, it's really important, especially in a year like this, it's always important, folks. Like, it's always important, but especially in a year like this, when there have been, I mean, there have been, nearly 60 farm equipment auctions in Arkansas alone that we know of.

00;17;20;14 - 00;17;41;07
Dr. Hunter Biram
You know, normally you're looking at maybe less than ten farm equipment auctions. And so, the financial conditions are very difficult, to say the least. And, I mean, we're talking about farm families here, and, so it's really important to pay attention to the markets. I know that that that's just one more thing to think about, but it's so important to be thinking about that right now.

00;17;41;09 - 00;17;44;29
Dr. Hunter Biram
And so with that, unless there are any other parting comments, we can go ahead and sign this off.

00;17;44;29 - 00;18;12;28
Riley Smith
I have a comment. I think, you know, talking about producers and growers. I think a lot of them, I mean, obviously they are paying attention to the markets. Otherwise, they still wouldn't be in business. However, with that being said, I think they need to be educated on both forward contracting and futures hedging, because I think in that situation, I think they're... you can always say you can leave money on the table or it saved you from not doing it at all.

00;18;12;28 - 00;18;37;24
Riley Smith
But yeah, I've dealt with too many cattle guys to know that, you know, a lot of times they're hedging on the futures just because that's about the only way you make money at cattle. So I think, I think getting, becoming more knowledgeable about markets will help you in the short term and in the long term. So, Dr. McKenzie, aren't you fixing to finish your book?

00;18;37;24 - 00;18;39;09
Riley Smith
That's what you just said earlier?

00;18;39;12 - 00;19;00;07
Dr. Andrew McKenzie
Yeah. Yes, I'm in the final throws. So hopefully by sometime this summer, it'll be out. So you'll be able to see it on Amazon and buy it, anybody who wants to buy it, they can. One thing I will add to what you just said there, Riley, too, is, you know, to me, you know, people may be reluctant to lock in prices because they're worried the price is always going to go higher.

00;19;00;09 - 00;19;32;04
Dr. Andrew McKenzie
So that, and I understand that. But to me, you know, not making a decision to lock in a price, is a decision, right? And so, I always, like you just said, you need, I think, if the price is reasonable enough to keep you in business, at least take some of that money off the table. And I will say this, that if you don't do anything and then you’re left to try to market at harvest time or try to store through later periods.

00;19;32;06 - 00;19;56;14
Dr. Andrew McKenzie
Man, it's costly to store grain. Even if you have your own bins. There's an opportunity cost to not selling and getting that money upfront. And the longer you try to store that, that opportunity cost or financing cost eats into your profit margins. So that, sometimes I don't think people fully take into account that negativity on storing after harvest.

00;19;56;16 - 00;20;09;18
Dr. Andrew McKenzie
If you forward contract, you know, and lock in the price ahead of time and get rid of it, in a sense market and sell your grain before harvest even gets there, you don't have any of that side of the cost to deal with.

00;20;09;20 - 00;20;31;21
Riley Smith
And I think good point. The, not to name any names. I know I'm not going to, but I know some guys that got in that position before corn dropped off before last year, the season before corn had a six in front of it. Why didn't you book half of it?

00;20;31;27 - 00;20;32;14
Dr. Hunter Biram
Because it could go 7.

00;20;32;14 - 00;20;54;26
Riley Smith
Or 3. And farmers, growers, and I can say this because I've been around them my entire life. Growers are so optimistic, the next day, that it's going to go up $0.10 or a dollar, or the price is going to go up. But if you sit there on your hands and don't do something about it, you could bid a little each day and say it went up a penny each day.

00;20;54;28 - 00;21;13;22
Riley Smith
You could bid a little each day, but at the end of it, you want to be where you don't hardly have anything in the bins, because that grain sitting in the bins, ain’t making you any money. And so, then you end up with, some folks I know, they ended up with 80,000 bushels of corn in the bin And guess what?

00;21;13;24 - 00;21;37;06
Riley Smith
They had a record year last year and made $2.50 corn. $2.75 corn. Where is that going to go now? Now you got to decide where to go with that, too. That's right. And so that just puts you, that just kind of all around comes back to the point we're trying to make that, even if it's a little bit. BiD a little bit, bid a little bit more, bid a little bit more, if it steadily goes up.

00;21;37;06 - 00;21;47;16
Riley Smith
Now, if it steadily comes back down, then you're in a position to say, yeah, I think I'll wait till tomorrow. But if it's, if you see it coming back down, you still don't want to end up with a whole lot left in your bin.

00;21;47;18 - 00;22;00;27
Dr. Hunter Biram
Yeah. And that's why it's so important to set price targets. So once it hits that target, do a little bit. And if it goes up a little bit you might say, well, I might go do a little bit more than what I had anticipated. But it's important like if, if that. So we had the price targets. Don’t remember what episode that was,

00;22;01;13 - 00;22;16;11
Dr. Hunter Biram
I should have had that off top of my head. But there is an episode where we're talking about price targets and potential price targets for this year. And as soon as that price hits in a given month, go ahead and do a little bit, as Riley is saying like, I think we were recommending 10% a month at least.

00;22;16;14 - 00;22;17;21
Dr. Hunter Biram
And hitting those price targets. Yeah.

00;22;17;21 - 00;22;34;05
Riley Smith
Spoon feed it. Don't take a big chunk. Everybody wants, it’s kind of like almost like a get rich scheme. You know, I want to hit it for a big lick. That way I can sit back and be cushy, versus spoon feed it and then I'll live to see another day and eat. Yeah.

00;22;34;06 - 00;22;42;07
Dr. Hunter Biram
Playing the long game. There you go. Playing the long game, for sure. Well Andy, I think, I think that just about wraps us up here. We really appreciate you coming on.

00;22;42;08 - 00;22;48;14
Dr. Andrew McKenzie
I appreciate you, doing all of this. This Morning Coffee stuff is great. So you guys just keep up the good work.

00;22;48;16 - 00;22;49;05
Riley Smith
Thank you.

00;22;49;07 - 00;22;52;26
Dr. Hunter Biram
Straight from the associate director himself. Thank you.

00;22;52;29 - 00;22;57;24
Riley Smith
All right, guys. Well, everyone, you know the drill. Stay tuned for the market report.

00;22;57;24 - 00;22;59;18
Dr. Hunter Biram
Thanks. Catch you on the flip flop.

00;22;59;20 - 00;23;23;09
Riley Smith
All right, guys, we're back with the market report September 25 corn. Current price is $4.37 per bushel. Month ago, price was $4.35 per bushel. That's up $0.02. And a year ago’s price is at $4.59 per bushel. That's down $0.22 September 25 rice, current price is at $13.37 per hundredweight. A month ago, price was $13.74 per hundredweight.

00;23;23;09 - 00;23;51;24
Riley Smith
That's down $0.37. A year ago’s price is at $15.21 per hundredweight. That's down $1.84. November 25 soybeans current price is $10.18 per bushel, month ago’s price is $10.19 per bushel. That's down $0.01. And a year ago’s price was at $11.65 per bushel. That's down a $1.47. July 25 wheat current price is at $5.31 per bushel. A month ago’s price is at $5.51 per bushel.

00;23;51;24 - 00;24;15;13
Riley Smith
That's down $0.20. And a year ago’s price is at $5.99 per bushel. That's down $0.68. December 25 cotton current prices at $0.68 per pound, a month ago’s price is at $0.70 per pound. That's down $0.02, and a year ago’s price is at $0.75 per pound. That's down $0.07. And your weekly U.S average peanuts, current price is at $496 per ton. A month ago, prices at $464 per ton.

00;24;15;15 - 00;24;46;11
Riley Smith
That's up $32. And a year ago’s prices at $540 per ton. That's down $44. And that's your commodity futures this week. Your input prices this week. Urea is at $547.50 per ton, ammonium nitrate at $520 per ton, ammonium sulfates $547.50 per ton. DAP $762 and just $762 per ton. Triple super phosphate $656 per ton. Potash $447.50 per ton.

00;24;46;11 - 00;25;13;22
Riley Smith
Ag lime $45 per ton, excuse me. And pelleted lime, this week's $240 per ton. Your diesel prices this week. Off road diesel $2.30 per gallon. Highway diesel $3.24 per gallon. And your Mississippi River level at Memphis, Tennessee this week. Current levels at 21.95ft, and a year ago was at 12.79ft. Want to thank you all again for tuning in to another episode of Morning Coffee and Ag Markets.

00;25;13;22 - 00;25;20;18
Riley Smith
We hope you enjoyed it and enjoyed your morning coffee as you tuned into another episode. So until next time, we'll catch you on the flip flop. Bye bye, now.