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.