|
|
|
THE ELEVATOR & PRODUCER 07/29/08 3:03:35 PM
We view the relationship between our business and our farmer customers as a partnership. Each share common goals of large crops and high prices. One false impression of some producers is that the elevator is cash price-oriented. This tends to create a view of us as a competitor, which is simply not true. We do not make or lose money on cash price changes, because when we buy grain from the producer we immediately sell the grain in the cash market or hedge the grain using futures. Ask one of our Location Managers how this works if you have questions.
The elevator needs volume to make our business work and the farmer also benefits from volume (higher yields). We add value to the producer through various marketing tools to help manage your price risk.
With a better understanding of this partnership, we can work together more confidently. Dakota Mill & Grain Inc's job in this partnership is to offer the farmer more diversified marketing options. It is our responsibility to help you evalutate and understand these options and the risk/reward potential. Keep in mind your goal should be a profit and not necessarily the season's highest price.
|
|
