Current Grain Policies

2017 Toppenish Corn Harvest Policy

2017 Charges

  • Drying Charge – $1.35 per ton per point ($.0377 per bushel) down to 15%
  • Shrink – 1.4% per point down to 14%
  • Handling – 8 cents per bushel

Due to space restrictions at Toppenish and low contracted bushels we will not be able to offer open storage to growers for the 2017 corn crop. The options for delivery of 2017 crop will be as follows:

  1. Forward Contract* – Grower sells the grain before delivery on specified bushel amount at a contracted price. There are no additional fees for writing this contract.
  2. DP Contract – Grower signs a contract before delivery for a specified amount with no price established. Title will pass on delivery and will be assessed a 5 cent per bushel per month DP charge prorated daily. Final pricing to occur before July 31st, 2018.
  3. Basis Contract* – Grower prices the basis before delivery at the harvest basis level on a specified bushel amount. Title passes on delivery. Grower has the option of pricing the futures and establishing the final cash price or rolling to next futures month at the current futures contract spread by the third Monday of the month prior to the underlying futures month, i.e. November 20th on a December corn futures contract. If the December corn futures are $3.65 and the March futures are $3.80, on November 20th, the basis would have $.15 deducted from the contracted basis level and the producer would now have until February 20th 2018 to establish their futures and final cash price or roll again to the next futures month.
  4. Hedge to Arrive* – Lock in futures now on a set bushel quantity and price the basis on or before delivery, a $.02 service charge will be assessed for this contract.

As an added benefit to using contract options 1,3 and 4 we will only be shrinking the corn to 15% which will give you 1.4% more corn to sell than you would have had in previous years. Also, there are no storage charges against your bushels on any of the contract options we are offering.

* For options 1,3 and 4 shrink will be to 15% which gives you 1.4% more corn to sell than years past.


2017 Basin Corn Harvest Policy

2017 Charges

  • Storage – 3.25 cents per bushel per month with 10 days free.
  • Drying Charge – $1.35 per ton per point ($.0377 per bushel) down to 15%
  • Shrink – 1.4% per point down to 14%
  • Handling – 8 cents per bushel

Due to expected restrictions on open space availability, customers who have not delivered corn into our locations in the last 3 years will not be able to put corn in open storage but will have the following contract options for delivery. Also for the 2017 crop year we will require all growers to sell any unsold bushels in open storage by 7/31/18 or use contract options 2 or 3 below at that time. All customers can use the options below if desired.

  1. Forward Contract* – Grower sells the grain before delivery on specified bushel amount at a contracted price. There are no additional fees for writing this contract.
  2. DP Contract* – Grower signs a contract before delivery for a specified amount with no price established. Title will pass on delivery and will be assessed a 5 cent per bushel per month DP charge prorated daily.
  3. Basis Contract* – Grower prices the basis before delivery at the harvest basis level on a specified bushel amount. Title passes on delivery. Grower has the option of pricing the futures and establishing the final cash price or rolling to next futures month at the current futures contract spread by the third Monday of the month prior to the underlying futures month, i.e. November 20th on a December corn futures contract. If the December corn futures are $3.65 and the March futures are $3.80, on November 20th, the basis would have $.15 deducted from the contracted basis level and the producer would now have until February 20th 2018 to establish their futures and final cash price or roll again to the next futures month. There are no monthly fees for this contract.
  4. Hedge to Arrive* – Lock in futures now on a set bushel quantity and price the basis on or before delivery, a $.02 service charge will be assessed for this contract.

As an added benefit to using contract options 1,3 and 4 we will only be shrinking the corn to 15% which will give you 1.4% more corn to sell than you would have had in previous years. Also, there are no storage charges for using any of the contract options above.

* For options 1,3 and 4 shrink will be to 15% for contracts written after 8/31/17.

Questions?

Please call Camron or Mike at 509-765-3881 or Nathan at 865-2451.

© 2017 CHS Inc.