Time Stamp Your Grain Marketing Plan

Time-stamped grain marketing is a tool for mitigating risk and planning for profit. By selling portions of your crop at intervals throughout the year, you may increase your chances of encountering favorable market conditions. Hugo VanRoessel, ADM Area Sales Manager, states, “Effective grain marketing can seem like a Herculean task. When you break down the process through time stamping, it allows you to have a clearer vision of when and how to market your grain throughout the growing season.”

Create a Grain Marketing Plan:

Crafting a grain marketing plan can be a valuable tool that distinguishes successful producers from those who may be navigating the market without a defined strategy. A well-structured plan ensures that each contract is intentional, purposeful, and strategically timed, aligning with both short-term needs and long-term business objectives.

By documenting your grain marketing plan, you create a robust decision-making framework that can help transform uncertainty into confident action. This approach provides accountability and minimizes second-guessing regarding the timing of your grain marketing decisions.

Your marketing plan should be a dynamic document that adapts to changing market dynamics, seasonal trends, and your operation’s specific financial needs. Plans should be reviewed regularly and adjusted as necessary. Hugo emphasizes, “A grain marketing plan gives you a road map of your desired outcomes. It will break up the numerous decisions that you must make throughout the growing season. As the season progresses, you can adjust objectives based on fundamental market shifts.”

View the Grain Marketing Plan

What Can Be Included?

1. 1. Calculate Your Breakeven: Determine your production costs, including variable and fixed expenses, to establish a baseline for profitable grain sales.
   2. Know Your Target Price: Set realistic price objectives that exceed your cash flow requirements. Lauren Grubb, ADM Account Manager, provides valuable insight: “Target prices can be established through the creation of marketing plans. The primary goal of this plan is to mitigate your risk in a volatile market. Each plan will be tailored to the specific needs of the operation, enabling us as account managers to understand your requirements and how we can effectively serve you.”
   3. Anticipate Cash Needs: Consider your financial obligations and set sale deadlines accordingly. Plan sales ahead of payment dates to ensure you have the necessary cash flow ready when required.
   4. Diversify Your Portfolio: Employ a variety of marketing tools to spread risk and capture favorable prices. To compare and evaluate various marketing methods, you can refer to ADM’s Grain Contract Comparison Chart.
   5. Track Your Progress: Utilize technology platforms such as ADM FarmView™ or FBN^® to manage your open grain contracts, track settlements, and monitor bids.
   6. Review Market Conditions: Easily receive automatic text messages on commodity prices, bids, offers, and facility updates from your preferred ADM location(s). Click here for more information.

By implementing a time-stamped marketing plan, you may position your operation to maximize potential returns while minimizing market volatility. “You have limited control over growing conditions and market conditions, but you can proactively plan to maintain discipline when the opportunities arise. A well-defined marketing plan empowers you to manage risk and ensure the long-term viability of your operation,” says Hugo.