The margin-free and stress-free way
to manage risk.
It’s no surprise that many farmers avoid farm marketing. It can add a significant amount of time and frustration to your workload. It forces you to keep on top of the market and decide when to sell, often while you’re receiving conflicting signals. Once you’ve done that, you need to decide how much to sell to have a meaningful impact on your final price. And then you need to decide how or if to protect it. One decision turns into hundreds of decisions, and then you start all over again.
A corn or soybean SP PriceProducer contract with your grain company is designed to help eliminate the stress of marketing while still offering you the peace of mind that you can only get from a farmer-focused, experienced price risk manager.
The contract periods
From October 1 to the following June 15 (for stored crop) and September 15 (for new crop), the Stewart-Peterson team is providing price risk management strategies to your grain company. The weighted average price of each contract is built over that contract period, founded on incremental sales decisions, and supported by other farm marketing tools to protect the sales decisions. When the contracts are over, the prices for each contract are set, and you make delivery to your grain company as agreed upon in the contract.
All along the way, Stewart-Peterson and your grain company deliver regular progress reports, so that you are kept aware of how the contract is being managed.
The advantages of professional risk management and a contract, all in one
For decades, Stewart-Peterson has delivered strategic, farmer-focused farm marketing services to farmers. This experience provides perspective that many traders simply don’t have – the understanding that marketing is not just building price. It’s building price while protecting the livelihood of the farmer served.
With SP PriceProducer, you get the advantages of working with the professionals at Stewart-Peterson, and all the benefits of a contract with a grain company you know and trust.
Fees imbedded in your price – not out of pocket. During the contract period as price is being built, the transactions and all the transaction costs and management fees are built into the contract’s final price. You don’t pay any costs up front.
Margin-free farm marketing: Protecting your final average price is an important responsibility of effective price risk management. Margin calls that may occur during the contract period remain in the contract, and you will never be asked to cover a margin call.
A core part of your farm marketing strategy: Commit up to 50 percent of your anticipated stored crop and 30 percent of your anticipated new crop production to SP PriceProducer. Click here to learn more about integrating SP PriceProducer into your strategy.