University of Maryland Extension

Understanding Grain Marketing Strategies is Critical for Success

The greater number of grain marketing tools available allow producers to increase their returns and reduce risks. Successful grain marketing involves a series of choices. It calls for tradeoffs among the farmer’s willingness and ability to accept price risk; amount of production risk associated with a farmer’s financial situation and related cash needs; grain market outlook; and the producer’s understanding of grain marketing strategies. This fact sheet lists the important factors producers should consider in selecting a particular marketing strategy, describes the typical marketing tools available to grain producers, and discusses the advantages and disadvantages of each option.
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