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Things You Can and Cannot Do in the Grain Business

Philip Luce Jun 10, 2025

Basis Trading Grain Merchandising Farmer Marketing Planned Merchandising Managing Volatility Hedging Strategies

Things You Can and Cannot Do in the Grain Business

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 of reach. But the most successful grain businesses don’t waste time chasing the impossible. Instead, they focus on what can be done - practical, disciplined actions that lead to long-term profitability and stronger farmer relationships.

Here’s a clear-eyed look at what you can and cannot do in the grain business—and why knowing the difference is one of the most important steps you can take.

YOU CANNOT	YOU CAN
Predict prices	Guide growers to take simple, consistent actions that lead to better outcomes over time
Help farmers by slashing your margins	Support farmers and your community by remaining a financially strong business long term
Sell the best basis every time	Strengthen your knowledge of grain values and sell with confidence
Set the best spread every time	Consistently connect basis purchases and sales in a disciplined and profitable way
Find an algorithm to make decisions for you	Get more comfortable and confident in making informed decisions
Keep positions straight in your head	Build strong, simple position tracking and management routines
See every rally coming	Have a plan, communicate with your lender, and be ready for seldom