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Survey looks at farmers’ grain marketing practices

A survey of farmers’ grain marketing practices finds the average producer uses four to five “tools” to market his or her crop in a given year.

Kansas State University ag economist Ted Schroeder, who worked on the survey with Omaha-based Farm Credit Services of America (FCSAmerica), says storage is still the most popular marketing strategy.

“Eighty-some percent of our producers say they store at least a portion of the crop,” Schroeder says.

The survey also shows more than two-thirds of producers use cash forward contracts and spot cash sales, while only a quarter of respondents use futures or options. But Schroeder tells Brownfield the average farmer is using a wider range of marketing tools than in the past.

“These guys are using a lot of different strategies and not relying on one,” he says. “Recognizing the need to spread out that market timing is an important component.”

FCSAmerica president and CEO Doug Stark says the survey also highlights the important role that crop insurance plays in supporting both risk management and marketing, not just when there is a crop failure.

Link to survey results on FCSAmerica web site

AUDIO: Ted Schroeder