How to Buy Grain from Farmers

It is only half-true that trading margins are optimized by buying cheap grain. Collaborating as partners reduces transactional behavior and creates positive feedback loops in service and loyalty.

Background

When farmers sell commodity grain it’s referred to as ‘marketing’, even though there’s no storytelling or product differentiation involved. Grain marketing is simply fixing the price on a certain quantity in a contract with a buyer.

Typically, farmers can store some, but not all, of their crops after harvest. Lack of storage and cash flow creat…