Pre-Planning Grain Sales: Some Basics on Forward Contracting

Risk management is all about planning ahead.  And that’s exactly what Kent Ploszspecializes in. If you’re not familiar with forward contracting, or DDCs, this video is a great place to start.

Forwarding contracting, also know in the grain industry as Deferred Delivery Contract (DDC) allows farmers to agree with a grain company ahead of time, that they will deliver a quantifiable amount of grain in return for a specified sum of money at a future date. This is a smart risk management strategy, that farm businesses should definitely be aware of, and look into.

This workshop was funded in part by the Agriculture & Food Council of Alberta

 

For further resources, check out these Important Topics for Successful Grain Marketing, from Farms.com Market School.

 

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