Cargill Perspective

Protect Your Market Risk with Minimum Price

March 31 USDA Report + Uncertainty = Need for Risk Management
The USDA’s March 31 crop report is just days away. With uncertainty surrounding this year’s report, farmers concerned with the potential for market volatility will want to be prepared. One way to do this is with Cargill’s Minimum Price contracts, which are designed to help manage your risk – a factor that grows with every bushel of unpriced grain in your bins.

Knowing the Numbers Gives You Control - and Profitability

There’s a lot of talk today about how tight your margins will be in 2015. While it’s true we don’t have the market conditions of 2008 to 2013 with their 70% to 80% returns on investment, there is a lot of evidence that farmers can still do well—if they plan.

Many Cargill Farm Marketers and Origination Specialists working with producers across the nation say that, despite the market’s downturn last year, margins for most Cargill customers are averaging 7% to 15% for 2014—an ROI that outperforms most other investments people are earning.

Daily Floor Plus: A Great Strategy for a Range-Bound Market

A “Game-Changing” Tool Captures Above-Market Price Now

Do you think new crop futures are range-bound, and are nervous you’ll miss any run-up? Do you want to start selling this year’s crop at a profitable price point, and get on with a hundred other tasks for the new crop year?

Daily Floor Plus (DFP) helps manage those problems. This unique contracting tool, popular across the U.S. on all types of farms the past two years, is ideal in a market that’s trading in a narrow range, say Cargill’s risk management experts.

Pacer Prime Grain Contract Helps Farmers Capture Crucial Window

Please Note: The sign-up period for the Pacer Prime grain contract ended Friday, February 20th, 2015. For help with other Pacer contracts, please speak with your Cargill Farm Marketer.

As a farmer today, you’re faced with relentless financial pressures, and spring is rife with them: Income tax and land payments come due just when you’re buying inputs and insurance for the new year. Usually your farm program payments and crop sales help ease the burden.

Don't Waste Your Crop Insurance

Over the next few months you‘ll be asked to make decisions that affect your farm for years to come.   

Right now, the spotlight is on the new government farm programs and which election to choose for your operation. These programs have the potential to significantly impact farm revenue. Once you make these choices, they’ll be locked in for the next five years. When developing these new programs, the government specifically designed them to complement the other major component of the farm bill: federal crop insurance.

January 12 Crop Report: Are You Prepared for a Game-Changer?

It’s hard to believe 2014 is over and we’re into January of a new year. Now that holidays and the year-end tax crunch are over, it’s back to tackling your biggest unresolved question: How to sell your stored 2014 crop?

"What’s happened with a record harvest is that lots of bushels went into bins,” says Jennifer Kazin, a risk management expert with Cargill. “Now is a good time for putting a plan in place for that crop.”

Timing is everything.

Grain Marketing Consistency: Why It Pays

Farming has become a high-volume proposition with razor-thin profit margins. In the most recent census (2012), U.S. farmers had record-high sales of $394.6 billion, but it cost them $328.9 billion to produce their products.
And costs keep rising. In Iowa this year, expenses for machinery, seed, chemicals, fuel, and labor were $4.97 per acre for a corn crop—increased from $4.50 per acre in 2011 (U of Iowa Extension Service).
At the same time, the Farm Bill is a less dependable backstop than it used to be.

How ProPricing Works

How ProPricing Works

New to ProPricing® contracts? Here's what you can expect as a ProPricing customer:

1. Sign Up

You meet with your Farm Marketer and commit to sell a specific number of bushels through a ProPricing contract based on your marketing goals. The ProFactor questionnaire can help with this process.

2. The MarketPros Go to Work