Farmer Articles
Grain Basis Blog and News
Selling Futures Contracts vs. Hedge to Arrive, Which Grain Marketing Strategy is right for you?
Key Points: Grain marketing requires the correct hedging strategy. Two common hedging tactics include selling futures and hedge to arrive (HTA). HTA lets you set a sale price with an elevator or end-user for delivery later, while selling futures uses an exchange, like the Chicago Board of Trade, to make contracts to...
Cash Sale VS. Hedge to Arrive- Hedging with Different types of Grain Contracts
Introduction Grain contracts are a vital component of the agricultural industry, providing farmers with a means to sell their crops and buyers with a dependable supply of grain. Nevertheless, the unpredictability of weather patterns and volatility of commodity prices present significant financial risks for both parties...
Leasing Farmland, A Comprehensive Buying Guide For the Beginner Farmer
Key Points: Leasing farmland is crucial for beginning farmers to establish their businesses and make a livelihood. Before signing a lease agreement, it's important to consider factors such as soil quality, location, written lease terms, rental payments, land use restrictions, maintenance responsibilities, and insurance...
What is a Grain Marketing Strategy, Things to Know and Consider
Introduction to Grain Marketing strategy As a farmer, you must know two things: your cost of production and the price needed to break even. (If you need to know national averages, you can check them here: Cost Of Production) Selling grain is a volatile business, and having a strategy may help you avoid random decisions...
How the Basis Tool is Used in Ag Marketing
Key User Data: In the Ag business, Basis is defined as the difference between the local cash price for corn or soybeans and the price for the same underlying commodity trading on a futures exchange. The local cash price for a crop is the actual price received for the crops sold, and the price of the commodity future on...