Five Star Cooperative understands the hard work and dedication you put into every harvest. That’s why we offer a range of grain contracts – to provide you with the tools and security you need to maximize your profitability and manage market risks effectively.
A grain contract is a legally binding agreement between you, the farmer, and us, Five Star Cooperative, regarding the sale and delivery of your grain.
Many contracts allow you to lock in a price for your grain, protecting you from sudden market downturns. This provides financial security and helps you plan your operations with confidence.
The grain market can be volatile. Contracts help you mitigate price risk, ensuring a more stable income stream.
Contracts like deferred payments allow you to tailor your payment schedule to your specific needs, improving your cash flow and tax planning.
Various contract options, such as Hedge to Arrive and Basis Contracts, provide flexibility in how and when you price your grain, allowing you to capitalize on market opportunities.
Store your grain at our facilities, giving you the flexibility to market it when the time is right.
Navigating the grain markets can be complex, but with Five Star Cooperative, you have access to a variety of grain contracts designed to meet your specific needs and risk tolerance. Whether you’re looking for price level certainty, flexibility, or deferred payments, we have a solution for you.
An offer contract allows you to set a specific price for your grain within a defined timeframe. If the market reaches your target price, the contract is executed. This gives you the opportunity to capture favorable prices without active monitoring.
Provides flexibility to capitalize on target prices without having to watch the markets intently including overnight hours. Can capitalize on market volitility that otherwise would be difficult such as key report days.
A priced contract establishes a fixed price for your grain at the time of the agreement. This provides price certainty and protects you from potential market declines.
Eliminates price risk by securing a predetermined price for your grain.
A Hedge to Arrive (HTA) contract locks in the futures price component of your grain sale, allowing you to set the basis (the difference between the futures price and the local cash price) later. This offers flexibility in managing basis fluctuations and delivery windows.
Separates futures pricing from basis management, allowing for strategic decisions on both components.
A basis contract locks in the basis component and delivery window of your grain sale, while the futures price remains open. This is ideal when you believe the basis is favorable but want to wait for a more advantageous futures price.
Secures a favorable basis level, while retaining flexibility to price futures later. This allows you to deliver your grain without having to price it.
This contract sets a minimum price for your grain, giving you downside protection while allowing you to potentially benefit from upward market movement.
Offers downside price protection with upside potential.
A Price Later contract allows you to deliver your grain at harvest but delay pricing it until a later date within a specified timeframe. This provides paid storage flexibility and the opportunity to monitor market trends.
Combines storage and pricing flexibility, enabling you to capitalize on post-harvest market movements.
With a deferred payments contract, you can deliver your sold grain now and receive payment at a later date, often for tax planning or cash flow management purposes.
Allows for strategic cash flow management and tax planning.
Five Star Cooperative offers specialty contracts tailored to specific grain types or market demands. These contracts are designed to meet your unique needs. Contact your local Five Star Cooperative grain originator to learn more about these contracts.
Tailored solutions for specific producer needs.
Deposit corn for grinding through our feed department.
Using lower cost inputs for your feed mix, convenience of storing grain at any location, possible reduced risk of grain market volatility for feed costs.
Submit an offer through our Five Star Link app for current customers. If you are a new customer, reach out to our grain team below or contact us form.
Staying up-to-date on the latest regulations and process requirements will make your grain sales smooth. Check out some of these important resources for your grain selling needs.
Selling your grain is easy with our Five Star Link app. View bids, enter grain offers, sign contracts, and more at your fingertips.
These are real dollars to spend on your Five Star seed, chemical, and NexStar purchases. Learn more about the Five Star Bucks program.
If you would like to sign up for any of the following information, please send a text to (641) 552-0896 with:
