By CME Group
At a Glance:
- Matt Bennett’s harvest season is a family affair, with long days and dedicated teamwork.
- Bennett employs strategic risk management to navigate commodity price volatility and weather unpredictability.
For Illinois farmer Matt Bennett, the fall harvest season is not just a time of hard work but also a family affair. This year, the farm crew includes three of Bennett’s children, his father and one non-family helper. The days are long and filled with nonstop activity until late in the evening.
Harvest Expectations High
Bennett is optimistic about the 2024 harvest, despite some early weather challenges. “Harvest season has been great. It’s been a little more structured and labored than normal. But quite frankly, the crops are good. So that makes Mother Nature’s unwillingness to work with us at the start of harvest maybe a little more palatable.”
According to the USDA’s weekly report released on October 15, the harvest of U.S. corn and soybeans remained ahead of the five-year averages. Despite fluctuating weather conditions, including a dry June and August, Bennett’s farm received timely rainfall that maintained their crops’ health. “Our beans are just below record and our corn is exceeding, which we’re thrilled about,” Bennett reported.
The Importance of Hedging Risk
The volatility of commodity prices and the unpredictability of weather patterns can significantly impact a farming season’s outcome. Farmers like Bennett are well aware of these challenges. By implementing effective risk management strategies, they can safeguard their operations against these variables.
Bennett, who is also co-founder of AgMarket.Net, explains that hedging risk is not just about protecting against price drops but also about securing a stable income.
“By using CME Group’s options and futures contracts, we can lock in a minimum price for our crops. This way, even if the market takes a downturn, we have a safety net in place. It’s about ensuring that we can cover our costs and maintain profitability, no matter what the market does.”
The success of this harvest season for Bennett reflects his dedication, some help from family, and a well-executed strategy for managing risk.
Watch how Bennett navigated the harvest season on his Illinois farm in the video above.