2021 New Crop Iowa Commodity Challenge
Author
Published
1/5/2021
A new crop marketing simulation is now available for those wishing to learn using real cash, futures and options markets. Are you interested in learning how the cash and futures market work together in a hedge? Would you like to explore the opportunity to sell corn and soybeans before harvest? Would you like to learn without making actual transactions and risking real revenue? The 2021 New Crop Iowa Commodity Challenge has been prepared for you just for these reasons.
The simulation farm has 600 acres of corn and 600 acres of soybeans to be planted in the spring of 2021. The farm has an Actual Production History (APH) of 180 bushels per acre (bpa) for corn and 50 bpa for soybeans. The farm is covered by 75% Revenue Protection crop insurance for corn and soybeans.
The plan is to market virtual bushels before harvest knowing that you are guaranteed 81,000 corn bushels and 22,500 soybean bushels to be delivered on October 20, 2021 (the simulation end date).
Participants focus their marketing tool selection to new crop delivery forward contracts and December corn and November soybean futures and options. Cash transactions are based on a real example market just north of Des Moines.
The marketing choices you make in the game are up to you. The game allows you to experiment with marketing tools with real, current futures and cash prices. I will be implementing a new crop marketing plan based on price goals and time deadlines. Join the simulation to see how that example plan works in 2021.
Please click here for the instruction sheet and game password to start learning by experience!
For more information or questions, please contact Ed Kordick, Farmer Education Program Manager, ekordick@ifbf.org
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