pricing wheat for 2012

[farmaholic]

Not literally Tom. I would rather market canola any day versus wheat. We have never sold anything but #1 canola, can't say that for wheat though. Some canola contracts even specified prices for the lower grade canola, could imagine the number of possiblities for premiums/discounts for spring wheat based on 3-4 grades and different protein levels and other possible factors. All I was saying is that canola to me appears alot easier.

[farmaholic]

"subject to off specification adjustment and pricing factors in effect at the time of delivery..."


a little too much uncertainty here for me!!!!

I doubt I will be forward contracting(pre harvest) until I know what I have. Can you imagine giving that much power to the buyer to determine(especially) the discounts they will apply if it doesn't meet spec. If there are discounts/premiums written into the contract AT THE TIME OF SIGNING, I might consider signing.

[FarmRanger]

I agree farmaholic, I don't like open-ended contracts with unspecified discounts to be determined at the discretion of the other party to the contract. I'm thinking this part of the new contracts will have to be clarified a little better before I sign on the dotted line.

I know grade discounts can be a real wild card depending on how much good versus poorer quality wheat gets produced, but there must be some way of handling this without putting too much risk on either the farmer or the grain buyer?

[TOM4CWB]

Farmaholic,

We have been into discount grades on our canola for both the 2010 and 2011 crops.

We had no locked in terms on this discounted production.

We were dealt with fairly and with reasonable terms on this contracted product that was substandard... both Canola and wheat adjustments that went beyond the call of duty.

I do not understand how so many growers have such a bad relationship with grain buyers that treat us very fairly! If they do not... I tell them so... and the vast majority of the time the terms are changed to meet our needs!