The Female Grain Marketer

A grain marketer balances three things that seldom peak on the same day: cash price, available storage and the family’s enthusiasm for another meeting about basis. The work involves setting realistic goals, comparing buyer offers and managing obligations after a sale. If you are the woman who handles this part of the farm, make the process explicit enough that someone else could explain your plan when you are in the field.

“Grain marketing: sell high, sleep low.”

Compare what a buyer will actually pay

Record bids from prospective buyers with date, delivery window, location and applicable grain specifications. Compare the net result after the costs you can estimate reliably, such as freight and hauling time, and ask about moisture, grade and other deductions. The University of Wisconsin Extension guide to grain basis explains how local cash prices relate to the applicable futures price. Ask a buyer which futures month it uses when quoting basis. Two offers can look alike at the top of a rate sheet and produce different checks.

Set a realistic estimate of marketable production and list what has already been committed. Test the harvest estimate under lower production before agreeing to deliver more. Discuss the effect of a short crop with your marketing adviser and insurer as applicable. Keep collateralized grain and other constraints visible in your records.

Give storage a price and a deadline

Estimate the cost of holding unsold grain, including available facility charges, any financing costs and the practical cost of managing grain quality. Compare the current net bid with a later-delivery scenario. Ask whether the spread would pay for those costs and what risks remain if the later bid changes. The bins are an asset, even when the best return they offer this month is an excellent echo.

Write the plan before the phone rings

Start with the bills grain sales need to cover and when they come due. Choose a schedule for reviewing unpriced inventory and a decision process for evaluating offers. Depending on your farm, you may describe price targets, quantities and people authorized to commit sales. For each trade, save the written agreement, review grade and delivery terms, and record who will arrange hauling. Ask your adviser or lawyer about contract clauses you cannot explain, including alternatives when your farm cannot deliver as planned.

Evaluate execution after delivery

Compare the settlement sheet against the contract and scale tickets. Record price, price adjustments, freight and proceeds. If a part of the plan went poorly, distinguish an unfavorable market from a process issue such as late review or a missed delivery window. That distinction tells you what to change.

Share a brief record with the farm’s other decision-makers at season end. Include a couple of choices you would repeat and the one decision where earlier information would have helped. Marketing skill grows through reviewing actual decisions against the plan you had at the time. The year-end high is easy to identify in hindsight and difficult to deposit at the bank.