Department of Economics
The grain futures can offer a useful alternative in marketing the farmers grain.
• many alternative times and prices at which the farmer can market his crop.
• a payment to the farmer for storing his own gram.
• protection at times against a great rise in feed grain costs.
• valuable market information even to a person who does not choose to trade in them.
Larger farms, greater production and higher costs make it more important for a farmer to assure himself a price that will allow him a profit on his crop.
Usually most profitable sales are made at other than harvest time.
As farmers become familiar with grain futures, they will have no more doubts about their judgment of the future prices than they do now of cash grain. Grain futures can even eliminate some of the risks now associated with cash grain prices.
forward pricing, grain futures, farm management
South Dakota Experiment Station, South Dakota State University
Sogn, A. B., "Farmer use of Grain Futures: Opportunities -- Limitations" (1971). Research Bulletins of the South Dakota Agricultural Experiment Station (1887-2011). 595.