Proven results

The CropsProfit advantage has been put to the test

Post-harvest strategy only using fixed-price contracts

Model not using put options

White maize seasons Net profit above total break-even cost
% R/Ha
2013/14 46% R 3,457
2014/15 42% R 3,316
2015/16 46% R 3,798
2016/17 40% R 3,438
2017/18 34% R 3,011
2018/19 33% R 3,078
2019/20 76% R 7,518
2020/21 60% R 5,864
Average 47% R 4,185

How to read this case study

  • The aim of this study is to show you how CropsProfit serves its purpose , season after season.
  • It uses actual farmer's break-even costs, planned harvest yields and final harvest yields.
  • The same lowest net profit goal of 20% above total break-even cost and seeded area were used for all seasons.
  • Profits fluctuated each season, but the CropsProfit model caught the curveballs and helped to ensure consistent profitability despite changing market and weather conditions.
  • All costs, including marketing, were covered and a profit was made each season.
  • Create your own season from your old data to see for yourself. If you have any problems, invite someone you trust to join your team and to help you.

2013/14 - Model not using put options

not put options 2013 14 graph
not put options 2013 14 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

2014/15 - Model not using put options

not put options 2014 15 graph
not put options 2014 15 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

2015/16 - Model not using put options

not put options 2015 16 graphs
not put options 2015 16 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

2016/17 - Model not using put options

not put options 2016 17 graph
not put options 2016 17 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

2017/18 - Model not using put options

not put options 2017 18 graph
not put options 2017 18 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

2018/19 - Model not using put options

not put options 2018 19 graph
not put options 2018 19 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

2019/20 - Model not using put options

not put options 2019 20 graph
not put options 2019 20 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

2020/21 - Model not using put options

not put options 2020 21 graph
not put options 2020 2021 results

How to read this graph

  • The black line shows the marketing cycles’ closing prices.
  • The orange dots are uncertain harvest transactions, typically done when the black line is higher than the green line.
  • The red dots are certain harvest transactions, typically done when the black line is higher than the blue line.
  • The lines on the sold graph show how much of the total harvest was sold.
  • The Net Profit in the performance table is in the farmer’s pocket. Transactions were done on each marketing cycle’s closing price. The cost of marketing tools and basis delivery differential was also taken into account.

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