Minnesota West Ag Services, LLC

2009 Sample Farm The 2009 MWAS Sample Farm is a hypothetical farm located in West Central Minnesota. The cost of production used for breakeven projections are typical of farms in the region. The sample farm produces crops that consists of: Corn: 550 acres at 182 bushels per acre = 100,000 bu. of production Soybean: 500 acres at 50 bushels per acre = 25,000 bu. of production Spring Wheat: 80 acres at 62.5 bushels per acre = 5,000 bu. of production Minnesota West Ag Services utilizes a proprietary Position Management program to provide a snap shot look at potential profitability using our recommendations and pricing unsold production at "Marked to Market" - the current price or a specific price. The "Mark to Market" is a short report provided in the printable summary for each crop. The "Position Management Report" is a multi-page complete summary that includes numeric data of all sales, options, futures, insured bushels and creates delivery reports for bushels and revenue. Graphs provide a visualization to show your costs, goal and revenue on a per acre basis and for the crop enterprise. A market position graph shows how a change in price impacts your overall position as compared to being 100% open and the crop insurance revenue floor.
Corn 2009 Current 2009 Corn Position - Mark to Market printable summary Position Management Report - printable Last recommendation May 12, 2010 100% (100,000 bu.) sold at $4.58 futures average = $4.18 cash average price & $113 per acre profit 40% (40,000 bu.) reowned call option spread Put option profits banked totaling $45,200 20% (20,000 bu.) basis contract at -.25 under May 2010, leave futures & final price open (April 14, 2010) rolled to July -.07 basis now -.32, set futures price at $3.80 July 2010 (May 12, 2010) 40% (40,000 bu.) reowned July 2010 call spread, buy July 4.20 call and sell July 5.20 call @ .25 (filled 10-26-09) 20% (20,000 bu.) HTA, July 2010, June del @ 4.30 (filled 10-21-09) set basis for June delivery at -.35 on April 14, 2010 40% (40,000 bu.) protected w/ Dec. '09 corn $3.00 puts @ $.15 when rolled down from $4.00 puts (filled 9‐04‐09) (expired 11-20-2009) 20% (20,000 bu.) HTA, Mar. 2010, Jan del. @ $4.80 (filled 6‐02‐09) set basis for March delivery at -.24 on 12/16/09 40% (40,000 bu.) protected w/ Dec. '09 corn $4.00 puts @ $.22 (filled 6‐02‐09) exit with roll down to $3.00 puts, sold at $.95 for $.73 profit total $29.200 (filled 9-04-09) 20% (20,000 bu.) HTA, Dec. 2009, fall del. @ $4.09 (filled 4‐23‐09) set basis for fall delivery at -.45 on 9-02-09 20% (20,000 bu.) HTA, Dec. 2009, fall del. $5.91 (filled 5‐14‐08) set basis for fall delivery at -.45 on 9-02-09 20% (20,000 bu.) protected w/ Dec. '09 corn $5.70 puts @ $.90 (filled 5‐06‐08) exit sold at $2.00 for $1.10 profit total of $22,000 (filled 12-4-08) Energy 2009 Diesel Fuel Propane Natural Gas	Soybeans 2009 Current 2009 Soybeans Position - Mark to Market printable summary Position Management Report - printable Last recommendation October 26, 2009 100% Sold average net cash price of $10.03 per bushel 60% (15,000 bu.) sold Pre Harvest w/ $10.75 futures average less -.42 basis for fall delivery at $10.33 cash average 40% (10,000 bu.) sold Post Harvest w/ Nov. '09 at $10.00 - .42 basis = $9.58 cash 40% (10,000 bu.) reowned call option spread Put option profits banked of $6,450 20% (5,000 bu.) reowned July 2010 call spread, buy July 10.20 call and sell July 12.00 call @ .50 (filled 10-26-09) 20% (5,000 bu.) reowned July 2010 call spread, buy July 9.80 call and sell July 13.00 call @ .70 (filled 10-26-09) 40% (10,000 bu.) sold cash w/ Nov. '09 at $10.00 - .42 basis = $9.58 cash (filled 10-20-2009) 40% (10,000 bu.) protected w/ Nov. '09 $9.00 put @ $.180 (filled 10‐07‐09) expired 20% (5,000 bu.) HTA Nov., fall delivery, @ $10.80 (filled 6‐01‐09) set basis for fall delivery at -.42 on 9-02-09 20% (5,000 bu.) protected w/ Nov. '09 $10.00 put @ $.70 (filled 6‐02‐09) exit sold at $.97 profit for total of $1,350 (filled 10-07-09) 20% (5,000 bu.) HTA Nov., fall delivery, @ $9.30 (filled 4‐21‐09) set basis for fall delivery at -.42 on 9-02-09 20% (5,000 bu.) protected w/ Nov. '09 $12.00 put @ $1.50 (filled 5‐14‐08) exit sold at $2.88 for $1.38 profit for total of $6,900 (Filled 10-07-09) 20% (5,000 bu.) HTA Nov., fall delivery, @ $12.17 (filled 4‐11‐08) set basis for fall delivery at -.42 on 9-02-09 Spring Wheat 2009 Current 2009 Spring Wheat Position - Mark to Market printable summary Position Management Report - printable Last Recommendation November 27, 2009 40% sold cash @ $5.00 60% sold Mar 10 HTA @ $7.42 basis set for Feb Delivery at +.10 Roll Dec 2009 HTA to March 2010 at +.17 and then set basis for Feb 2010 delivery (basis range from +.10 to -.35 depending upon market) (filled 11-27-2009) Sold 40% (2,000 bu.) Cash @ $5.00 (filled 8-26-09) Sold 60% (3,000 bu.) HTA, Dec 2009, Dec Del. @ $7.25 (filled 5-15-2009)
Cost of Production 2009 Cost of Production for 2009 - Printable Detail The 2009 cost of production estimate includes variable, land and indirect fixed costs per acre and crop enterprise along with profit zone and sensitivity analysis for multiple crops that include the following: Corn: $740 per acre total costs equal a break even of $4.07/bu. @ 182 bpa. Soybeans: $435 per acre total costs equal a break even of $8.70/bu. @ 50 bpa. Spring Wheat: $423 per acre total costs equal a break even of $6.77/bu. @ 62.5 bpa. Storage: It is assumed that on farm stoarge is available for 50% of both corn and soybeans. Commercial storage is available for the remaining 50% of the crop to be used as strategy considerations apply. Standard carry costs to be applied on stored grain.