The CEO of the Minnesota Soybean Growers Association says cash basis is currently the largest crippling factor to farm profitability.
“As bad as the commodity prices are, basis is actually the number that’s truly taking all of the profitability out of this crop.”
Tom Slunecka tells Brownfield every time soybean futures improve, the basis widens.
“So farmers are not gaining ground in these small rallies that we’re seeing.”
He says the basis price should account for the cost of transportation between the point-of-purchase and Chicago.
Continue reading What’s up with basis? at Brownfield Ag News.
