Art of Grain Merchandising

How to Originate Grain by Capitalizing on Delayed Payments

Posted by Chance Wood

May 23, 2017 7:55:00 AM

Year after year the most successful grain companies are those that execute a plan to acquire the majority of their ownership before harvest.  Likewise, the most successful farm marketing plans include selling grain when include locking in profitable prices before harvest for delivery at harvest or after.  So if it is advantageous for both parties to take action before harvest, why isn’t this commonplace? 

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Topics: Grain Origination

3 Skills to Master for Successful Grain Origination

Posted by Kelli Frazier

May 15, 2017 10:44:59 AM

Grain origination isn’t exactly easy.

Successful grain origination programs take time and resources to develop. Since your ability to originate grain has a direct impact on your bottom line, it’s easy to see why origination can be such a competitive aspect of the grain business. We can help you gain a competitive edge by addressing the 3 Keys to Grain Origination Success: Communication, Customer Focus, & Credibility.

 

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Topics: Grain Origination, Farmer Marketing

Plug the Leak & Build Higher Sides

Posted by Roger Gattis

Feb 27, 2017 3:08:59 PM

On the farm, you’re likely never very far off from having to plug the next leak. The tire on the planter, the head gasket on the service truck or that hydraulic hose on the tractor; it seems like there is always something leaking, at least that’s how it was around our place! The instance that comes to mind from my childhood is that of a small, leaking cattle pond on a piece of ground dad bought. When the spring rains came that pond would not only fill up, but it would easily overflow due to its shallow banks. The greater tragedy was that not only could it not hold more of that runoff, but that it also had a slow leak so that by early summer, just as we needed that water the most, the pond was nearly dry. Dad would say that pond got us “comin’ and goin’”. Knowing full well that bemoaning the fact that this scene played out year after year would do absolutely nothing to fix the problem, dad decided to do something to remedy the situation. And as he knew from personal experience the yearly cycle of spring rains and summer droughts so prevalent in western Arkansas, he had high certainty to believe that this cycle would repeat again the upcoming year.

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Topics: Grain Origination, Farmer Marketing

Black Bears, Yellow Corn, and Grain Marketing Hibernation

Posted by Roger Gattis

Dec 9, 2014 11:00:00 AM

Resisting the urge to float the current of all things holly and jolly, I have found a more unique, if not better, analogy for describing some of our producers in the current environment than convincing everyone to be the Santa Claus bearing bushels for all the good end users of the world; black bears and hibernation.

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Topics: Grain Origination, Farmer Marketing

BASIS AND FUTURES: TWO BEASTS WITH ONE BURDEN

Posted by Roger Gattis

Nov 4, 2014 11:00:00 AM

Simply stated, the shared burden of both the basis and futures is to move grain. When these signals are interpreted correctly, this task is accomplished. The point of difference being who these signals are intended for.

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Topics: Grain Origination, Grain Merchandising

5 Grain Origination Reasons to Have the Minimum Price Discussion

Posted by Roger Gattis

Oct 21, 2014 11:00:00 AM

By this point in the harvest season, the writing on the wall has become the chicken coming home to roost. That is, this massive crop that kept all but the most progressive producers afraid to sell has become reality, and to some, a stark case of could’ve, should’ve, would’ve. One thing is for certain: looking back to the days of where prices were two, three or even four dollars higher is a fruitless endeavor for our producers. Our duty now, as effective grain merchandisers, is to capture the moment to reinforce how taking action now is better than continuing down the path of indecisiveness.

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Topics: Grain Origination, Farmer Marketing

Farm Marketing: Guide To Minimum Price Contracts

Posted by Don Rogers

Sep 30, 2014 11:00:00 AM

Understanding the idea of Minimum Price Contracts

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Topics: Grain Origination, Farmer Marketing

Guest Farm Marketing Blog: Planning? We’re Talking About Planning?

Posted by Jared Simpson

Jul 8, 2014 11:00:00 AM

Several years ago basketball star Allen Iverson was conducting an interview and was asked a question about a disagreement between himself and his coach regarding Iverson’s participation in practice. What followed was one of the most well-known sound bites in recent sports history, during which Iverson expressed his incredulousness at being asked about his performance at practice rather than analyzing his impact during the actual game.

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Topics: Grain Origination, Farmer Marketing

Why Paying More for Grain Won’t Help Your Grain Origination

Posted by Jason Wheeler

Jul 1, 2014 11:00:00 AM

Anyone who has ever bought grain knows how tempting it is to raise their bid just a little bit. It seems like your bid for grain is never quite enough when you are talking with your farmer customers. Someone else somewhere else always seems to have a better bid than you. Never mind the fact that they are 100 miles away and only 3 cents better. Never mind the fact that they have a 4 hour waiting time and you have no line and can dump a truck in 5 minutes.

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Topics: Grain Origination

The Most Effective & Simple Grain Origination Strategy There Is

Posted by Sherry Lorton

Jun 3, 2014 11:00:00 AM

The typical grain marketing discussion that occurs with a farmer at the elevator or coffee shop centers a lot around price. 

            What are prices doing?  Where are they going?  Why is the market doing what it’s doing?

You can talk hours about the subject but, in the end, trying to predict or make sense of price is futile.  No one has the crystal ball.  Though farmers tend to bring up the discussion of price, what they are really asking for is help with their grain marketing.

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Topics: Grain Origination