The grain industry has developed several new tools to help farmers manage increasing risks and price volatility.
Elevators can use grain options markets to offer minimum and maximum price contracts.
Yield futures can help producers manage production risk. Rapid growth of electronic information systems has accompanied the new risk management tools. In some cases, you may need more information to effectively use available marketing tools and market information. This publication explains risk management features of various grain contracts and important business practices needed for successful contracting. Sound Business Principles Contract details vary from elevator to elevator, and with the type of contract being considered.