Using Investing for a New Purpose (Grain Contracts)

Question

Curious if any Power Users have an idea on how I could use the investing features to track crop production inventory and associated sales - cash and forward contracting events.

Here is what I am trying to do:

* Add inventory (using shares) based on harvested grain - and I guess an average estimated Futures sales price?

I will then make sales throughout the year typically of 2 types.

* Recording forwarded grain contracts - where the sale is in the future.
* Recording cash sales out of the field.

Is there a logical way to do this?  Some issues are when the sales price is higher / lower than the average price when the inventory was added.

If anyone has any thoughts of how this could be implemented that would be awesome.  I'd really like the grain to show up on my balance sheet as well as have a way to run inventory and contract reports for stored grain and future sales.

Thanks.

q_lurker · Answer

… I think if corn is worth $4.56 per bushel and you harvest 10,000 bushels, you could define a security called Corn and Add 10,000 shares @ $4.56.

Or if you are expecting to harvest 10,000 bushels, you might want to figure out your expected cost/bushel and Add the 'shares' at that price.  Harvest more or less becomes a Stock Split.

Some issues are when the sales price is higher / lower than the average price when the inventory was added.

Wouldn't that just be selling at a profit or a loss?  Treating the corn as a stock, you can adjust the price up and down as the market fluctuates keeping your balance sheet somewhat accurate.

All this is using Quicken in a way it is not intended.  That can always lead to unforeseen circumstances and unintended consequences.  So be wary.  I would think there must be a farm management program (maybe even QuickBooks from Intuit) that would be much better geared toward this task.

Jim_Harman · Answer

II have no personal experience with this, but I think if corn is worth $4.56 per bushel and you harvest 10,000 bushels, you could define a security called Corn and Add 10,000 shares @ $4.56.

As the price changes, you can update the price history in Quicken.

When you sell some of your inventory, you would record the sale just like selling stock.