Monday, March 1, 2010

AdFarm Pinto Beans Sold

The Dream
Beautiful clean rows of Pinto Beans.
Heavy blooming and adequate vining.
Exciting Potential.

The Reality
A cool summer caused the beans to mature slowly.
October snow and cold stalled harvest progress. Enlarge the above photo to see the ice crystals.
November harvest meant using a flex head which leaves more beans in the field.
The harvested pinto beans are of good quality and appear to have profit potential. Over half of AdFarm's Beans are contracted for harvest delivery at 25 cents per pound.
All the pinto beans are trucked to the Sharon Bean receiving station where the non-contracted beans will be stored free of charge until March first. The marketing committee's plan is to watch the market and wait for a rally that will produce a profit.

The Result
March 1, 2010
AdFarm Pinto Beans sold

After convening the AdFarm ND Farm marketing committee,  AdFarm cooperating farmer Fred Lukens was instructed to make the phone call selling the remaining AdFarm pinto beans for 24 cents per pound on Friday morning, February 26, 2010.
Unfortunately, the break-even price on the remaining AdFarm pinto beans was 29 cents per pound.  The AdFarm ND Farm Marketing committee faced the following realities in their deliberations:

1.    Free Storage from Larimore Bean, owner of Sharon Bean receiving station, ends on March 1, 2010.   Storage will be charged at .1¢/month after March 1.

2.    Despite apparently friendly market fundamentals, the pinto bean market did not have a significant post harvest rally.  The Larimore Bean price peaked at 27¢/lb. in early January.

3.    2011 new crop  contracts were offered for a short time @ 23¢/pound in  late January.   These contracts sold out quickly.   

4.    Despite rumors to the contrary, potentially market moving USDA “food for peace” tenders expected in late February did not materialize.

Lukens projected an approximately $1,900 net loss  ($27/acre) for the 2009 AdFarm Farm project.    Exact per share values will be calculated at for the early April  AdFarm ND Farm annual meeting.
Marketing committee member Carina Emil commented, “It’s been a long time since our AdFarm ND Farm has lost money.   This is a learning experience for all of us..  We learn when we win and we learn when we lose.   To keep this in perspective, we should remember that if we average our AdFarm ND Farm income and loss for the past two years, we show a $4,300 profit.  Pinto Beans were the right crop to grow this year.   Mother Nature and the markets worked against us this time.”
The AdFarm ND Farm an educational investment of AdFarm and its employees. In 2009, 130  employees purchased an average of slightly more than 4 shares at a price of $25 per share.  This year we experienced the down side of taking a risk.
For the AdFarm ND Farm, 2009 is behind us.

Stay Tuned
Remember the advice of Winston Churchill. Never give up! 
Like farmers everywhere, we're making plans for the 2010 season! 

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