In addition, growers on contract will not be able to take advantage of favorable price changes. Both producer and buyer need to carefully consider all terms of a contract before signing. The producer, in particular, should learn about the legal aspects of contract production. Understanding the standards and terms specified is especially critical. Another option is marketing through a farmer cooperative.
Cooperatives are a way for farmers to keep more control of their marketing.
Cooperative marketing can help narrow the marketing margin by cutting out brokers and other middlemen. Production costs per bushel are usually higher than conventional costs. To begin with, specialty grains, whether value-added varieties or alternatively produced, tend to yield lower than conventional varieties and methods. There may be additional labor and management required to meet quality and delivery specifications, as well as investments in cleaning and storage equipment. Transportation costs may be higher if certified cleaning plants or points of delivery are located far from the farm.