Wheat Season

Your wheat is sampled, weighed, the moisture tested and the test weight taken when you arrive. All calculations are made using this information. A copy of the scale ticket will be given to you at the time of delivery.

We reserve the right to reject wheat on the basis of quality to preserve the quality of the other wheat in storage. We will be responsible for maintaining wheat in good condition and to insure it against loss. Prices are subject to change without formal notification. All price changes will be posted on the effective dates.

Soft Red Winter Wheat Discount Schedule:
(based on bushel)

Moisture:

$.05 for ea. ½ % for moisture 13.6 and up

Shrink:

.7% for ea. ½% for moisture of 13.6 and up

Test Weight:

$.05 for ea. ½ lb. for test weight of 57.9 to 56
$.08 for ea. ½ lb. for test weight of 55.9 to 53
$.10 for ea. ½ lb. for test weight of 52.9 to 48
Below 48 lb. Test weight - subject to rejection

Damage:

$.06 for ea. 1% from 4.1% to 10%
Over 10% - 6 cents/each additional point

Foreign Material:

$.02 for .8% to 1%
$.03 for ea. 1% from 1.1% to 5%

Shrunken and Broken Kernels:

$.02 for ea. 1% from 5.1% to 10%
$.05 for ea. 1% from 10.1% and up 

Total Damage:

$.03 for ea. 1% from 5.1% to 10.0%
$.06 for ea. 1% from 10.1% to 15.0%
$.13 for ea.1% from 15.1% to 30%
Over 30.01% Subject to Rejection 

Vomitoxin:

$.20 for 2.1 - 3.0 ppm
$.40 for 3.1 - 4.0 ppm
$.60 for 4.1 - 5.0 ppm
$.20 for each point over 5.1 

MUSTY - $.10
INFECTED - $.10
INSECT - rejected
STORAGE - .167 cents/bu./day
(approx. $.05/mo) 

Dockage will be deducted from gross weight.

Storage & Out Handling Charges:

You will have 10 days of "free time" before your wheat will be put into storage. You will be charged $.15 per bushel or a minimum of $15.00 per load handling charge if you wish to remove your wheat or transfer your wheat to another party.  There will be no handling charge for grain sold through Country Visions Co-op or processed through CP Feeds LLC.  Discounts listed above will still apply.

Cost of Storage and DP (Delayed Price):

If you do not wish to market your wheat immediately, you may store it, place it on a minimum price contract, a basis contract or a Delayed Price contract.  The cost of the storage will be $.00167 per bushel per day calculated beginning on delivery day. (Approx. $.05 per bushel per month) A minimum monthly storage charge of $5.00 will apply.

D.P. charges will be $.20 per bushel plus $.03 per bushel per month starting upon delivery. All D.P. wheat must be priced by May 31, 2018.  D.P. charges are subject to change.

Payment for Wheat:

If you sign a contract to sell your wheat, you will be paid for that wheat within 7 days after you complete your contract. Notification of your last load or delivery would be greatly appreciated.

06/23/17 2:32:41 PM

 

Soybean Season

 

General:

 Your soybeans are  weighed and sampled upon arrival.  They are then graded for moisture, test weight, foreign material and damage. All calculations are made using this information. A copy of the scale ticket will be given to you at the time of delivery.

We reserve the right to reject soybeans on the basis of quality to preserve the quality of the other soybeans in storage. We will be responsible for maintaining soybeans in good condition and to insure them against loss. Prices are subject to change without formal notification. All price changes will be posted on the effective dates.

Charges:

Moisture discounts are based on incoming or wet weights. Soybeans that are contracted or sold spot and are 13% moisture or less will not be discounted. Soybeans that are above 13% but below 15% will only have shrinkage, above 15% moisture will be discounted at a rate of $.10 plus $.02 per each additional 1/2 point over.

Shrinkage Calculations:

A 1% shrink will be deducted for each 1/2 % of moisture over 13%  to 15%. A 1.5% shrink will be deducted for each 1/2 % over 15. Soybeans going into storage will be shrunk an extra 1/2%.

Storage Policy & Cost:

You will have 10 days of "free time" before your soybeans will go into storage. After 10 days, the cost of storage will be $.001667 per bushel per day or approximately $.05 per bushel per month.  A minimum monthly storage charge of $5.00 will apply.

Out Handling & Transfer Charges:

You will be charged $.15 per bushel or a minimum of $15.00 per load if you wish to remove your soybeans or transfer your soybeans to another party.  There will be no charge for grain processed through CP Feeds LLC or for grain being sold through the Co-op.

DP (Delayed Pricing or Price Later) Program:

If you place your beans on a DP contract they are no longer in open storage.  You are giving up ownership.  You will have until August 31, 2017 to price them.  This may be extended if the CBOT futures warrant.  You may price all or any part of the contract at anytime the Chicago Board of Trade is trading.  There will be a $.04 per month charge for this contract.  This cost will be deducted at time of settlement

Payment for Soybeans:

If you sign a contract to sell your soybeans, you will be paid for those soybeans within 7 days after delivery for the contract. If your soybeans are sold on a "spot" market, you will be paid for those soybeans within 7 days.

Sell Discount Schedules:

Moisture%            Shrink%          Charge
13.0>13.5                  1                     0
13.6>14.0                  2                     0
14.1>14.5                  3                     0
14.6>15.0                  4                     0
15.1>15.5                  5.5                .10
15.6>16.0                  7                   .12
16.1>16.5                  8.5                .14
16.6>17.0                  10                 .16
17.1>17.5                  11.5              .18
17.6>18.0                  13                 .20
18.1>18.5                  14.5              .22
18.6>19.0                  16                 .24
19.1>19.5                  17.5              .26
19.6>20.0                  19                 .28

FM:  Any foreign material in excess of 1.0% will be deducted from the gross bushels

If soybeans are sold to the Co-op the following discounts apply:
        TW:              $.01 per bushel per 1/2# under 54
        Damage:      $.02 for each 1% over 2.1% to 5.0%
                             $.04 for each 1% over 5.1% to 15.0%
                             Beans over 15.0% damage are subject to rejection.
                             Green beans count as damage.
        Splits:          $0.0025 for each 5.0% over 20.0% to 35.0%
                            $0.0050 for each 5.0% over 35.1% to 45.0%

10/6/16 2:38:03 PM

Oats Season

Your oats are sampled, weighed, the moisture tested and the test weight taken when you arrive. All calculations are made using this information. A copy of the scale ticket will be given to you at the time of delivery.

We reserve the right to reject oats on the basis of quality to preserve the quality of the other oats in storage. We will be responsible for maintaining oats in good condition and to insure it against loss. Prices are subject to change without formal notification. All price changes will be posted on the effective dates.

Charges:

Drying charges and discounts are based on incoming or wet weights. Oats at 13% moisture or less will not need to be dried. Oats above 13% moisture will be dried at a charge of $.07 per bushel plus $.01 per 1/2 point of moisture removed.

Shrinkage Calculations:

All oats based on 13% moisture.
1.60% shrink per point of moisture removed from the oats.

Storage & Out Handling Charges:

You will have 10 days of "free time" before your oats will be put into storage. You will be charged $.15 per bushel or a minimum of $15.00 per load if you wish to remove your oats. There will be no "free time" for loading out. If you transfer your oats to another party, there will be a $.15 per bushel transfer fee. There will be no charge for grain processed through CP Feeds LLC or for grain being sold through Country Visions Co-op.

Cost of Storage:

If you do not wish to market your oats immediately, you may store it at our facility. After 10 days, the cost of storage will be $.00167 per bushel per day. (Approx. $.05 per bushel per month) A minimum monthly storage charge of $5.00 will apply.

Payment for Oats:

If you sign a contract to sell your oats, you will be paid for that oats 7 days after you complete your contract. Notification of your last load or delivery would be greatly appreciated.

Discount Schedule:

If oats are sold to the Co-op for immediate sale
the following discounts apply:

37.5# test wt.=.01/bu
37.0# test wt.=.02/bu
36.5# test wt.=.03/bu
36.0# test wt.=.04/bu
35.5# test wt.=.05/bu
35.0# test wt.=.06/bu
34.5# test wt.=.07bu
34.0# test wt.=.08/bu
33.5# test wt.=.10/bu
33.0# test wt.=.12/bu
32.5# test wt.=.14/bu
32.0# test wt.=.16/bu
31.5# test wt.=.18/bu
31.0# test wt.=.20/bu
30.5# test wt.=.22/bu
30.0# test wt.=.24/bu

Oats that have a lower test weight than 30#, and are not rejected, will be charged a higher discount rate.

Dockage will be deducted from gross weight.

06/28/16 1:45:33 PM

 

Corn Season

General:

Your corn is sampled, weighed, the moisture tested and the test weight taken when you arrive. All calculations are made using this information. A copy of the scale ticket will be given to you at the time of delivery.

We reserve the right to reject corn on the basis of quality to preserve the quality of the other corn in storage. We will be responsible for maintaining corn in good condition and to insure it against loss. Prices are subject to change without formal notification. All price changes will be posted on the effective dates.

Discount Schedules:

If corn is sold to the Co-op the following discounts apply:

Test Weight:
$.02 for each 1 lb. under 54.0 to 50.0
$.04 for each 1 lb. under 49.9 to 46.0

Moisture:
$.02 for each ½ pt of moisture up to 30%

Corn going into storage will be discounted to 14%.
Corn sold spot or applied to a contract is discounted to 15%.
Corn over 30% moisture is subject to rejection.

Shrink:
.7% for each ½ pt up to 20%
.8% for each ½ pt 20.01% to 30%
1% for each ½ pt 30.01% and above

Corn going into storage will be shrunk down to 14%.
Corn sold will be shrunk down to 15%.

FM:
$.03 for each 1% from 3% to 5%
$.05 for each 1% over 5%

Damage:
$.02 for each 1% from 5% to 7%
$.04 for each 1% over 7%

DP (Delayed Pricing or Price Later) Program:

If you place your corn on a PL contract they are no longer in open storage.  You are giving up ownership.  You will have until August 31, 2017 to price them.  This may be extended if the CBOT futures warrant.  You may price all or any part of the contract at anytime the Chicago Board of Trade is trading.  There will be a $.05 per month charge for this contract.  This cost will be deducted at time of settlement.

Storage & Out Handling Charges:

You will have 10 days of "free time" before your corn will be put into storage. You will be charged $.15 per bushel or a minimum of $15.00 per load if you wish to remove your corn. If you transfer your corn to another party, there will be a $.15 per bushel transfer fee. There will be no charge for grain processed through CP Feeds LLC or for grain being sold through Country Visions Co-op.

Cost of Storage:

If you do not wish to market your corn immediately, you may store it at our dryer. After 10 days, the cost of storage will be $.001667 per bushel per day or approximately $.05 per bushel per month. Incoming dry corn will be discounted to 14%.

Payment for Corn:

If you sign a contract to sell your corn, you will be paid for that corn within 10 days after you complete your contract. If your corn is sold on a "spot" market, you will be paid for that corn within 7 days.

9/20/16 5:39:37 pm

Contracts

Spot Cash Contract

Spot Cash contracts are the most commonly used of any of the contracts. It is used when the cash price has reached your goal with little thought to either futures or basis.

POSITIVES:

  • Easiest and safest to execute
  • Cash price and quantity are fixed
  • All costs and risks of price decrease are eliminated
  • Payment received immediately after contracting

NEGATIVES:

  • Lack of ability to participate in a market rally
  • Required to deliver grain immediately after contracting
 

Forward Cash Contract

Forward Cash Contracts allow the producer to lock in an elevator's deferred cash grain price. Normally, this is done the deferred price is enough to cover the producer's interest and storage costs. In addition, this contract is also preferred to fix a crop selling price.

POSITIVES:

  • Executed easily
  • Cash price and quantity are fixed
  • Risk of a price decrease is eliminated
  • Have the ability to lock in storage and interest costs
  • Have the ability to defer income
  • Title exchanged upon delivery and payment

NEGATIVES:

  • Payment not received until grain is delivered
  • Lack the ability to participate in a market rally
  • Required to deliver grain
  • Possible penalty for cancellation
 

Delayed Price Contract

Delayed Price Contracts allow producers a high degree of price flexibility for an extended time period. A service charge may or may not be used by your local elevator during the marketing year. If service charge is being used, a price increase must be expected to offset this expense.

POSITIVES:

  • Price flexibility is all aspects, futures and basis
  • Delivery and pricing date are not associated
  • Storage risk and costs are transferred
  • Frees up farm storage for new crop

NEGATIVES:

  • Involves the transfer of grain title
  • Required to deliver grain as stated in contract
  • Payment is not received until the price is fixed
  • Service charges may be implemented during harvest
  • Open to price risks
  • Grain must be marketed twice
 

Minimum/Maximum Price Contract

Minimum and maximum price contracts are a very safe opportunity for the producer to participate in market movement for further profit. The producer should use when he anticipates a favorable market move that will enhance his base price but wants to market and lock in a minimum or maximum price.

POSITIVES:

  • Very Safe
  • Receive base or floor price up front
  • Can participate in market rally with defined risks (premium)
  • Premium may be cheap compared to interest, storage, drying, shrink, and handling costs
  • Flexible - can be used with a variety of contract strategies

NEGATIVES:

  • Lose basis opportunity at harvest time
  • Premium and service charges may be costly
  • Must market option to add value
  • Lose time value if producer waits until contract expiration is near to market option
  • If market has no movement, premium is wasted
 

Basis Contract

Basis contracts are similar to forward cash contracts in that they allow the producers to lock in a future delivery price, but only partially. The partially fixed price is basis: the difference between cash and futures; with the futures to be fixed in the future. Favorable basis levels are normally achieved when futures are low in comparison to history.

POSITIVES:

  • Risk of a basis decrease is avoided
  • Storage costs and risks can be avoided
  • Allows for future pricing flexibility

NEGATIVES:

  • Involves the transfer of grain title
  • Rewired to deliver grain as stated in contract
  • Futures must be established and grain delivered before payment is received
  • Risk of a futures price decrease
  • Must be knowledgeable on futures and basis levels
 

 

Hedge to Arrive Contract

Hedge to arrive contracts are the reverse of a basis contracts. Use this contract when futures are high and believe futures will drop and simultaneously basis is wide and should narrow.

POSITIVES:

  • Lock in good market price opportunity for basis gains
  • Can eliminate storage costs and risks when used at harvest

NEGATIVES:

  • Total of grain is transferred upon contracting
  • Potential basis losses if used at harvest or market low
  • Commitment of pricing before desired basis rally (need time)
  • Must market grain a second time
 

Deferred Payment Contract

Deferred payment contracts are used to defer tax liability to another tax year. Please consult your tax accountant to proper application.

POSITIVES:

  • Deferment of tax liability

NEGATIVES:

  • Very rigid contract - must be to maintain integrity
  • Non reversible in case some last minute expense arises
  • Lose grain title
  • Must depend on financial strength of company
  • Must have firm value of grain established - lose market rally
 

 

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What is a Co-op?

The U.S. Department of Agriculture (USDA) defines a cooperative as a user-owned, user-controlled business that distributes benefits on the basis of use. Member users, or patrons, own and democratically elect the board of directors, which provides oversight of the co-op. Net earnings are distributed on the basis of proportional use, or patronage, rather than on investment.

Cooperative associations have been organized throughout history to carry out many different activities, often in response to economic and social stress. Cooperative organizations in the United States first appeared in the late 1700's and today co-ops can be found in all sectors of the U.S. economy. Consumer, purchasing and farm supply cooperatives are all organized to provide the specialized goods or services that their member patrons want to buy.

By combining member demand, a co-op can provide better availability, selection, pricing, or delivery of products or services to individual consumers, businesses or farmers. Farm supply co-ops cost-effectively supply input, fuel and agronomy services to farm business owners.