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With the start of the new year comes planning for seeding in the spring. Part of this plan always needs to be marketing the products you have in the bin. Smart decisions early in the year make for an easier time marketing as the year progresses. AGT Foods is regularly asked for tips from producers on effective grain marketing. Really, it just comes down to good planning, sticking with your strategy and making good decisions—especially on the grain you're seeding.
Here are some tips for prospective grain sellers:
- Incremental selling—don’t be looking for a home-run every time. If you sell and the market goes up, great, you should still have some to sell at a later date. If you are hoping to hit top of the market, good luck.
- Know your cost/break-even point—this will make it easier for you to set realistic goals. What you need, what you want and where the market is may not be the same.
- Know the company you are selling to, the terms of payment, and make sure they are bonded.
- Make sure you have a good relationship with your grain buyer—they are your key to market information, what is going on at the farmgate and will make it easier to overcome issues.
- The highest price is not always the best, do your due diligence—just because they are offering doesn’t mean they are taking.
- If you are selling a larger volume, ask for incremental settlement as product is delivered.
- Know your competition and when their supplies come on board. This will help you to make smarter selling decisions.
Have more questions about marketing your grain? Drop us a line at buying@agtfoods.com.
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