Jul 26, 2016 10:18:51 AM
Feb 3, 2015 11:00:00 AM
Jan 27, 2015 11:00:00 AM
Jan 20, 2015 11:00:00 AM
It is winter and the grain elevator is abuzz with activity . . . you have old crop bushels to empty out of the bin, grain to move off the farm, and for those involved in agronomy, chemicals, seed and fertilizer are on the horizon as well. The last thing that you are thinking about at this point is grain merchandising for next year’s crop.
Dec 2, 2014 11:00:00 AM
The typical discussion that occurs with a farmer at the elevator or coffee shop centers a lot around price.
Nov 18, 2014 11:00:00 AM
One of the greatest weapons in a grain merchandiser's arsenal can be making deferred basis sales. It can be a great way to reduce basis risk, reduce margin call/cash flow risk, and set the stage for some big margin opportunities. As grain merchandisers, we’re good at selling what we own but it's convincing users of the opportunities to lock in future needs that elevators struggle with most. How do we learn to be a better seller?
Topics: Grain Merchandising
Oct 28, 2014 11:00:00 AM
As the Controller, CFO or CPA responsible for producing financial statements for your company’s grain division, do you sometimes feel that you are talking a different language than those around you? Are there times when others disagree with the numbers even though you know everything is correct? Can you discern why the numbers look the way they do from a merchandising perspective? Are you as confident as you would like to be discussing the financial statement with the owner, grain manager, Board of Directors or lender and in terms they understand?
Don’t feel alone. The truth is, the complexity of today’s grain businesses require you and your grain accounting team not only to be skilled in the practices of accounting, but to also have a detailed working knowledge of basis trading, spreads and market values-- concepts and practices never taught in your accounting classes.
Jul 29, 2014 11:51:00 AM
When you see what appear to be good, well-established, long-standing companies suddenly fall apart it makes you wonder. How do good businesses go bad? When you take a close look at companies that get into trouble, there tends to be a common denominator that leads to their demise… they stray from the core disciplines of sound business management. In simpler terms: they get distracted and forget to follow the rules.
The grain business is no exception to distraction. The commodity markets by nature attract a lot of noise that can steer even the soundest of companies off course. It takes a constant dedication to keep on a disciplined track, especially when there is a lot of hype over the newest, latest and greatest idea. But, as it has been proven time and time again, those that stay focused on the core disciplines of their business stand strong through good times and bad.
Topics: Grain Merchandising
Jul 15, 2014 11:01:07 AM
These circumstances serve as a good reminder that there is a farm marketing alternative available to farmers that can take away the downside risk – that being the Minimum Price Contract. With this contract, the farmer sets a floor price on his grain so he never takes less than the stated price but remains open to the possibility of more if prices increase.
Topics: Farmer Marketing