
1 min read
The Connections We Can't Live Without
Strong Relationships are the Heart of a Thriving Grain Business
Read More1 min read
Strong Relationships are the Heart of a Thriving Grain Business
Read More1 min read
In the grain business, it’s easy to get distracted by the things we wish we could control. Prices, timing, market moves - these often feel just out...
1 min read
The idea of growing your business by adding another grain elevator is exciting. More space often means more bushels - and more bushels should mean...
2 min read
In the intricate world of grain trading, understanding and mastering the concept of pre-spreading can significantly enhance your ability to protect...
1 min read
Your grain bid expresses your opinion of your own value to the people you are buying from. Pushing the bid a few cents seems like a small concession,...
2 min read
Why Communication is the Key to Success in Grain Operations In grain merchandising and elevator operations, communication isn’t just a soft...
1 min read
The Common Challenge: Price Pressure
1 min read
Why Communication Matters In the fast-paced world of grain merchandising and grain elevator operations, effective team communication can be the...
3 min read
In today’s fast-paced world, people crave more than just a paycheck - they seek purpose, growth, and the chance to build a better future. As an...
2 min read
In the world of grain merchandising, where margins can be thin and market conditions change rapidly, certain traits help set successful businesses...
2 min read
When farmers enter into a Minimum Price Contract (MPC), they are essentially buying time — locking in today’s price while keeping the door open to...
2 min read
When offering Minimum Price Contracts (MPCs) as a marketing tool to farmers, it’s essential to clarify a key point: the elevator isn't buying call...
2 min read
Reviewing the fundamentals of the basis trading environment The 2023-24 crop year was a transition away from inversion and into carry for corn and...
1 min read
As you get your facilities in top shape for the fall harvest, don’t overlook doing the same for your merchandising. A little bit of pre-harvest...
1 min read
There are several different ways to say it, but at the core having basis eyes means
2 min read
A big drop in prices has farmers understandably reluctant to sell, but the grain industry still needs to grind, process, ship, and otherwise do what...
4 min read
Leveraging wisdom from tycoon John D. Rockefeller can translate to sustained success for grain elevators
3 min read
Understanding the Idea of Minimum Price Contracts
4 min read
Take advantage of this transition period to reflect, strategize, and prepare for the upcoming season. Summertime in the grain business is both a time...
1 min read
I was recently talking to someone who buys 90% of the grain that crosses the scales; some spot and some forward contracted. The approach is nothing...
1 min read
Open orders are your friend
1 min read
The vitality of Feed & Grain Cooperative Boards is intrinsically linked to their ability to avoid common blunders and implement effective solutions....
1 min read
Old Advice for Current Times I first heard this maxim about 25 years ago, and it wasn't new then. The person who shared it with me learned from an...
3 min read
Spring is a chance to create a firm foundation for the coming year.
2 min read
Preparing monthly financial statements is typically done so you can get the proper financing for your merchandising activities; but there are also...
3 min read
Grain companies can still see profitability in a tough economic environment.
2 min read
Winter is in many ways the middle of the marketing process for producers. Sales to make space at harvest and generate necessary cash flow have...
3 min read
The volatility in production, futures prices, basis, and spreads of the last few years have caused many of us to abandon the idea of a “normal”...
1 min read
Most merchandisers don’t enjoy trading markets with small carries and/or inverted spreads, but by all appearances, that is what the market is going...
1 min read
Let Me Give Away the Ending: No Despite years of articles predicting the irrelevance of the country elevator, it continues to be an important part of...
4 min read
As the season of fall harvest planning is upon us, let us take a moment to review the idea, and the reality, of the importance of having a grain flow...
1 min read
Grain elevator managers and merchandisers make many daily decisions that include selecting grain policies, buying grain, managing spreads, and...
4 min read
Knowing your grain company is key to navigating the change between carry and inverted markets Differing views on how to define transitions exist....
2 min read
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...
Have reliable monthly numbers from a repeatable process Understand what is important on your financial statements Create and revise your grain/cash...
1 min read
Wild markets stir up emotions in even the most seasoned of grain merchandisers. When margin calls are coming fast and frequently, and there are...
1 min read
High futures prices are offering an opportunity for growers and buyers of grain to achieve above average margins.
3 min read
Use these three skills to overcome the merchandising challenges that hit your profit margin.
1 min read
Weighing the Market's Needs with Those of Your Business
1 min read
Prior to a harvest, spreads for an upcoming crop year reflect the market’s emotions about that year. After harvest, spreads reflect the market’s...
4 min read
During volatile times, remember the basics of grain trading.
1 min read
Volatility has a lot of side effects on the mentality of a basis trader. Maybe the most dangerous is an aversion to being wrong – and when price,...
3 min read
What are the keys to creating a successful practice as a grain merchandiser?
3 min read
Market conditions may be out of a merchandiser's control, but steps can be made to tip the scales in their favor. I believe merchandising grain and...
1 min read
Unmet expectations are the springboard for all kinds of human problems. When things don't go as expected, the likelihood of becoming irrational or...
1 min read
The country elevator is in an enviable position to serve as a price neutral conduit for grain from producers to end users. In order for this to work,...
2 min read
A good basis trader will spend an entire career refining his/her basis trading knowledge and skills. However, every principle of basis trading is...
2 min read
Why? Pre-spreading is about locking in spread structure that will support your merchandising plans. (e.g., if you plan to carry grain you need a...
1 min read
We (human beings, that is) are strongly motivated by FOMO – Fear of Missing Out. Any decision we make before we are forced into deciding means...
1 min read
I ran across this in my favorites folder the other day. I thought it a worthy reminder of how being successful in the grain elevator business is...
2 min read
Last spring, things in the grain world were a mess. Huge swaths of the country were late planting or not planting at all. The general sense was that...
4 min read
Part of my job at a country elevator was buying grain from farmers. I want to be completely clear that the vast majority of my interactions were...
4 min read
What is contract integrity? Simply put, contract integrity refers to the viability and enforceability of a grain company’s policies and procedures...
2 min read
According to recent statistics, financial fraud is on a significant upswing. Last year, 82% of businesses in the United States suffered an instance...
1 min read
How many times has a farmer come into your office and told you about some "great, new marketing alternative" that the guy down the street is...
2 min read
Competition is the driving forces that determines a fair and equitable price. For the most part, your cash price to producers is based on your best...
1 min read
With so many different types of marketing alternatives available to farmers in the marketplace, how do you, at the grain elevator, decide on which...
5 min read
Cambridge dictionary defines waste of space as “a person or thing that is not useful or helpful.” In the grain storage business, it is our...
4 min read
A common refrain throughout my time and travels in the grain business is the concept of “selling the carry.” This is roundly regarded as a good thing...
4 min read
Farmers require two things from grain elevators to be able to market their crops successfully. They need access to the market and the means to...
4 min read
Explain how you're the middle man, but everyone still wins.
1 min read
The process of Mark-to-Market accounting for Canadian grain elevators basically looks like this: Develop the routine of tracking data on the six...
3 min read
Historical business truths typically come from very simple concepts. “Price is what you pay. Value is what you get” (Warren Buffet). “A penny saved...
3 min read
One thing that we all know for sure is that we are now officially one day closer to the next big “opportunity”. Some call it a “big rally" and some...
2 min read
How much unrealized profit or loss do you want to pick up on your financial statements? The answer to this question determines the method grain...
1 min read
Producing financial statements monthly is the best way to monitor the progress of your business. Monthly statements that include a Balance Sheet and...
2 min read
The end of summer brings thoughts of planning and profitability. Grain companies that buy grain from producers and sell it immediately to users of...
2 min read
When you see what appear to be good, well-established, long-standing companies suddenly fall apart it makes you wonder:
1 min read
The first step is to eliminate break even from the discussion, no grain company is in business to break-even. Decide on a profit target and this...
3 min read
Year after year the most successful grain companies are those that execute a plan to acquire the majority of their ownership before harvest....
2 min read
Grain origination isn’t exactly easy. Successful grain origination programs take time and resources to develop. Since your ability to originate grain...
1 min read
Financial dashboards are an efficient way to integrate long term goals into your monthly management process. The most effective dashboards have...
3 min read
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...
1 min read
Efficiency is the word I hear most often when talking with grain company CFO’s. The Sales, Operations, and Finance business segments need to be...
4 min read
Some costs in business are unavoidable. Production Agriculture is no different. It seems like everyone is trying to take a piece from you at every...
4 min read
In our last Grain Accounting class the discussion turned to the importance of having a good banking relationship. A lender in the meeting made the...
2 min read
As a member of the grain elevator community, we often wear multiple hats over the course of a season; accountant, PR rep, grader, dispatcher,...
2 min read
The word is out; grain merchandising margins are down all over the grain industry. Publicly traded and private companies are showing financial stress...
2 min read
Solutions to problems have a way of gaining clarity through discussions with trusted outside counsel. Clearly originating low basis bushels is the...
5 min read
If there is anything that the past several seasons of farming has taught us, it’s that there is indeed nothing new under the sun. Looking back, the...
2 min read
If you have tried to originate grain for a day or for a lifetime, you’ve heard plenty of reasons NOT to sell grain. “OK,” you say, “why don’t we go...
2 min read
Last year’s sales have been made, the numbers are great, but the receivables are growing. Will you get paid for the inventory you delivered? When...
2 min read
This year many of the ghosts of grain merchandising past have revisited us; low cash prices, higher than normal harvest basis levels, uncertainty of...
1 min read
“Trust but verify” is a Russian proverb Ronald Reagan made famous, but risk managers, CFO’s and grain company lenders live by it today.
2 min read
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...
2 min read
In the workplace, training and development can often be an overlooked or underutilized approach to improving business. Often the myth is that with...
1 min read
Grain Merchandisers intentionally eliminate as much currency risk as possible and trade based on the changes in the basis in the grain markets. The...
1 min read
When was the last time you actually walked through your merchandising plan? In the midst of the lackadaisical pricing environment of this past...
2 min read
Being a grain merchandiser can be a pretty lonely existence. There just aren't that many people on the planet that truly understand what a grain...
1 min read
It can be very painful for grain companies to change banks. New financial relationships require conference calls, planning sessions, and a lot of...
1 min read
It seems like each crop year that comes around brings new types of contracts with new promises. Of course, the years of low prices that make it...
1 min read
The handling margin (back-to-back margin) is captured when the bushels are sold and delivered when grain companies value inventory and purchase...
3 min read
The word habits has sort of a negative connotation. We could make long list of negative habits. What pops into your head when you think of good...
1 min read
The New Year brings a flurry of preparing financial statements and crunching financial ratios in an effort to get under the tax man’s bar or jump...
1 min read
The grain company CFO may have been viewed as a rare species prior to 2008, but the last 7 years have quickly brought the need for a CFO’s skill set...
1 min read
A Plan in the Making
2 min read
Planning with a Purpose
2 min read
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...
4 min read
Over the last decade of traveling the country and visiting with grain elevator managers and merchandisers, I’ve seen and heard some pretty amazing...
2 min read
When you, the grain merchandiser, think in terms of the buyer/user being your customer – rather than you being his customer – it puts a different...
2 min read
This time of year, with football games aplenty, basketball games on 27 out of 32 channels, and baseball just around the corner, inspires this simple...
1 min read
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...
1 min read
The typical discussion that occurs with a farmer at the elevator or coffee shop centers a lot around price.
1 min read
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...
2 min read
Despite just wrapping up an intense and at times nauseating, campaign season, I am not referring to politics here. Another way of phrasing this...
2 min read
Simply stated, the shared burden of both the basis and futures is to move grain. When these signals are interpreted correctly, this task is...
2 min read
As the Controller, CFO or CPA responsible for producing financial statements for your company’s grain division, do you sometimes feel that you are...
2 min read
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...
1 min read
In many parts of the world, grain merchandisers have just begun taking in a huge harvest. Dealing with logistics, limited space, slower than normal...
2 min read
Price Later (PL) Fees are unlike any other fees charged by grain elevators. For a background on PL Fees and what causes them to change, check out...
3 min read
Understanding the idea of Minimum Price Contracts
2 min read
Depending on what area you are in, you may hear it called Price Later (PL), Delayed Price (DP), or No Price Established (NPE). All of these terms...
3 min read
We all know what’s happening this year: across much of the country, we are staring down the barrel of a bumper crop of both corn and soybeans....
1 min read
In my 30 plus years in the grain merchandising business, I’ve been asked to do a lot of comparisons. Elevator GMs want to know how their margins...
2 min read
And no, this is not in reference to those somewhat awkward transition moments between childhood and the teenage years; rather, it’s referring to...
4 min read
This week's blog will answer some frequently asked questions regarding some alternative grain company financing tools. For a general overview of...
1 min read
Volatile prices and the difficulty accessing credit during peak financing periods opened the market to provide commodity futures swaps as a method of...
1 min read
Volatile prices mixed with a need to build working capital and equity pushed inventory repurchase agreements into the grain elevator financing and...
3 min read
The reason behind some buyers not volunteering this information to the elevator grain merchandiser isn’t necessarily deceitful; rather, it can be...
1 min read
The emotions of farmers have run the gamut these last two months as they sat in disbelief watching new crop prices plummet. For many it was a feeling...
1 min read
Several years ago basketball star Allen Iverson was conducting an interview and was asked a question about a disagreement between himself and his...
2 min read
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...
1 min read
Forward contract financing has become an essential piece of the grain elevator financing package. The modern day elevator must be able to help...
1 min read
At White Commercial, we have the privilege of working with over 250 grain elevator companies all over the US and Canada. We have identified specific...
5 min read
I want to initiate a Public Relations Campaign within the farming community to get BASIS the respect and understanding it deserves.
1 min read
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?...
1 min read
Where much is given, much is required and this is certainly true with collateral audits. The increased grain elevator financing requirements have...
2 min read
Successful businesses, no matter what industry, know, develop and practice the art of maintaining mutually beneficial relationships with their...
3 min read
People often ask why they should read this book and the answer is quite simple, because merchandising skills changes people’s lives. You may think...
1 min read
Hello, my name is Don Rogers. I’m part owner, former manager and merchandiser of Rogers Grain in Covington, OH. I want to share with you an...
2 min read
Let’s talk about spreads for a moment – Carry Spreads, Flat Spreads, and Inverted Spreads. It’s no secret that spreads play a big role in how...
1 min read
The Basis Trader's Rules We are in the grain business and we are basis traders. Futures are used only to fix the basis on a grain transaction and...
2 min read
Grain Origination is a skill. It is a learned skill. Unfortunately, experience sometimes is your only instructor when developing origination skills....