Financial – Enhance Your Profitability

If you’d like to be in a much stronger position to manage the financial risks you face in today’s volatile crop input sector and grain market, Two Rivers Cooperative’s Financial Services Project can help maximize your profit potential.

This service enables you to consolidate financial management, crop input planning and purchases, grain marketing, and risk protection from both natural perils and economic volatility in all agricultural markets. This pro-active, long-term planning process is accompanied by an evaluation system that enables us to help you assess the variables involved in these important decisions, along with their economic implications for your bottom line.

At the heart of this project is one-on-one, personalized service. Justin Huebner, our financial services representative, can help you determine the cost of production in your operation, take the worry out of managing input costs, focus on marketing, and help you reach your profit goals.

 

Managing Risk in a New Era

In the past, crop input purchases, crop production, and grain marketing were segregated from one another, to a large degree. In those days, sources of supply were plentiful, demand was largely dominated by the United States, and prices for crop inputs and the grain itself were stable from season to season. As we all know, those days are no longer with us.

As a result, we believe Two Rivers Cooperative’s role needs to expand to help you manage risks in volatile, unpredictable markets.

To accomplish this, we’ll utilize some of the services we are currently offering, such as producer input financing through the Cooperative Finance Association (CFA), and crop insurance, not only to provide you with protection from natural perils, but also to establish solid revenue protection from the extreme risks of volatile markets.

 

Knowledge = Profit Potential

Unless you know the exact cost of production for the crop that’s in the bin today or the crop that’s growing in the field, you’ll never know what price those bushels must be sold at to ensure profitability. Unless you know the cost of production for the crop you plan to raise next year, you’ll never be able to make informed decisions on purchasing the inputs needed to raise that crop or to make future sales to cover those costs and ensure profitability.

Through the new Financial Services Project, we help create the links that bring everything together to:

  • Generate estimated and/or personalized enterprise budgets and cash flow estimates.
  • Utilize forecasted/available crop nutrient pricing.
  • Determine recommended crop insurance coverage levels.
  • Provide timely grain market information.
  • Develop and implement customized grain marketing strategies.

We firmly believe the Financial Services Project will enable Two Rivers to fulfill the cooperative mission of enhancing farmers’ profitability. We’re reminded of the words of long-time cooperative supporter Nelson Gardner, who noted that “the purpose of a farmer cooperative is to enhance member’s income, and they should keep that at the top of their list of priorities.”