09/16/2020 | News release | Distributed by Public on 09/16/2020 15:53
Would you like a bonus on your old-crop corn or soybeans when you market your grain to MaxYield Cooperative? You have the chance to get a better price when you use a bonus premium
Ben Buie, Grain Team Leader
'Bonus premium contracts work well when you have old-crop grain to sell and you haven't made many new-crop sales,' said Ben Buie, grain team leader at MaxYield. 'If you have grain in the bin or on price-later, plus you have a good crop on the way, these contracts are worth a look.'
Bonus premium contracts can be tailored to your specific needs. 'The premiums can be fairly significant,' added Mick Hoover, grain solutions and origination team leader at MaxYield. 'Some have generated a premium of 37 to 38 cents on soybeans. Most of the corn premiums are 12 to 18 cents.'
HOW IT WORKS
You get paid a premium on today's grain in exchange for a committed offer to sell grain in the future, if the market rises above a set price. If today's price is around $3 per bushel on corn, for example, you could get a 15-cent premium in exchange for making an offer to sell the same number of bushels if the market goes above a target price in the specific month you set.
'The price level you set for your target will affect the premium, as well,' Buie said 'The further out you go and the lower price you pick for your target, the better premium you'll get.'
GET THE BALL ROLLING
MaxYield has been offering bonus premium contracts for about two years. While these contracts offer many benefits, there are risks. 'When you're making an offer to sell, there's some uncertainly with this contract,' Buie said. 'The further out you go, the longer you don't know how things will shake out.'
If you have old-crop grain to sell and you haven't sold much new-crop, however, don't shy away from bonus premium contracts. 'I don't see a lot of downside,' Hoover said. 'You need to sell new-crop, so put that offer out there. Even if the offer doesn't hit, you still have a check in your pocket from the premium for selling the old-crop.'
Reach out to the MaxYield grain solutions team to learn more about bonus premium contracts. 'Some of the contracts coming up look favorable,' Buie said. 'We look forward to serving you and appreciate your business.'
We're always looking to hire more trucks in the fall for our on-farm grain pickup service. If you'd like to work during the fall, we guarantee the income to the truck. Call Cassie Degner at MaxYield's corporate office at 515-200-5115 for more details
On-Farm Grain Pickup Makes Harvest Easier
Ever feel like you don't have enough time to get everything done? Our on-farm pick up service helps you save time, trims labor costs and reduces the wear-and-tear on your equipment.[Link]
Big or small, on-farm pickup works for all. 'About 26 percent of our fall corn deliveries in 2019 were acquired by our on-farm pickup service,' said Ben Buie, grain team leader at MaxYield Cooperative.
We can tailor the trucking needs to fit any size farming operation. It's not too early to let us know if you'd like to take advantage of on-farm grain pickup. Contact your nearest MaxYield location to sign. 'The sooner you contact us, the higher likelihood of getting a truck,' Buie said.
While MaxYield gears up on-farm pickup at harvest, we also offer this service year-round. 'We work hard to get everyone's grain hauled in a timely manner and make your life easier,' Buie said.