ADM Pre-Harvest Checklist: 8 Things to Do Before Heading to the Field
August 16, 2025
While most of the hard work at harvest takes place in the field, there are other steps you can take to make life easier off the field and avoid
Basis
If you feel there is a potential for future prices to improve, but basis levels may get worse, a Basis grain contract allows you to lock in only the basis portion of a cash contract for a specific delivery period. With the basis set, you can wait until a later date to set the futures reference pricing portion of your cash contract. Basis contracts may also allow you to receive a payment advance on an estimated portion of the contract value for the grain that has been delivered.
Note that entering into a Basis contract does not result in the seller opening a futures or options account or having a futures or options position. Any futures or options position taken by a buyer is for the benefit of the buyer only and shall be in the buyer’s name. Futures and/or options may be employed as a grain pricing mechanism. This contract is not a futures or options contract or a commodity pool agreement.
ADM products and services vary by location.
CLOSE
How it Works
How it Works
- Working with an ADM representative, you lock in the basis for a specific delivery period.
- If you wish, you may be able to receive a partial cash advance after delivery has occurred.
- You set your final futures reference price prior to the deadline provided by the contract terms.
- You deliver your grain within the contracted period and receive the contracted cash price (minus your cash advance, if applicable), which is the Futures Reference Price +/− Basis.
Benefits
Benefits
- Helps you actively manage your final grain price.
- Helps diversify your marketing.
- Allows you to take advantage of favorable basis.
- Can help improve cash flow, if needed.
- Maintain flexibility in your forward marketing.
Related News
Let’s Talk
Please contact me so we can have a conversation about this grain contract.