As a grain farmer, your goal is to produce the highest quality and quantity of grain on your available acres, and sell that grain for the highest return on your investment. All of your grain will be sold eventually. Without a plan, selling happens when cash flow or logistics force it to happen – and there is no guarantee that the results will be positive. Developing a marketing plan will enable you to take control of your profit and mitigate market risk.
Then comes the most important part. It can be difficult to maintain discipline when prices are moving. Entering firm offers makes it more likely that your plan will be enacted. Target Contracts are free and available for any commodity or delivery slot so they are applicable to all the bushels you need to sell.
A target contract is an agreement between the producer and the elevator that defines the quantity and price of grain that will be delivered to the elevator. Use your marketing plan to determine your desired target price. Then, decide the quantity of corn, soybeans or wheat you wish to sell at your target price. When the market reaches your target price, you will be notified that it is time to deliver your grain to the elevator. Your Target will be entered in the first available session once the target has been received and a confirmation email has been sent from Deerfield Ag Services, Inc. This target contract will be good until filled or canceled.
History has shown that the period between mid-May and late-July has the greatest potential for a corn or soybean rally to occur. This is the time to have your targets working. You can submit a target contract in-person, online or by phone: