Deliverable Harvest is the percentage of a season’s total harvest that can be delivered to buyers with absolute certainty.
During a season’s early pre-harvest period, that is before and just after the seeding, the Deliverable Harvest is typically made 0%. This period is also important because if market prices are high you might want to lock in good profits using your uncertain harvest marketing tools. You can buy put-options or do something else where you are not committed to deliver to buyers because a lot can still happen until the harvest is completed.
After seeding and field inspections you can steadily increase the season’s Deliverable Harvest to a typical maximum of 25% before harvest time.
If you are not sure about the Deliverable Harvest, rather use your lower estimate. Also remember that the crop’s quality can be graded lower than expected which will decrease your deliverable harvest for the standard grade you are contracting in.
Increasing Deliverable Harvest before harvest can help you because if prices are high enough you can now use these opportunities to lock in good profits with fixed delivery contracts before actual harvest time. Be very careful not to contract more than you can deliver!
After a season’s harvest is completed the Deliverable Harvest must be made 100% and there is no more guessing. Only then do you know with absolute certainty how much of a season’s harvest you can deliver to buyers and you are officially in the post-harvest part of a marketing season.
Making the Deliverable Harvest 100% after a season’s harvest is completed is also very important because only then will CropsProfit know to start calculating storage cost on the crop which is not yet sold.
- Example 1: If your Total Harvest is 1000 tons and your Deliverable Harvest is 0%, then CropsProfit calculates your Uncertain Harvest as 1000 tons and your Certain Harvest as 0 tons.
- Example 2: If your Total Harvest is 1000 tons and your Deliverable Harvest is 20%, then CropsProfit calculates your Uncertain Harvest as 800 tons and your Certain Harvest as 200 tons.
- Example 3: If your Total Harvest is 1000 tons and your Deliverable Harvest is 100%, then CropsProfit calculates your Uncertain Harvest as 0 tons and your Certain Harvest as 1000 tons.