is part of the Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

  • American Agriculturist
  • Beef Producer
  • Corn and Soybean Digest
  • Dakota Farmer
  • Delta Farm Press
  • Farm Futures
  • Farm Industry news
  • Indiana Prairie Farmer
  • Kansas Farmer
  • Michigan Farmer
  • Missouri Ruralist
  • Nebraska Farmer
  • Ohio Farmer
  • Prairie Farmer
  • Southeast Farm Press
  • Southwest Farm Press
  • The Farmer
  • Wallaces Farmer
  • Western Farm Press
  • Western Farmer Stockman
  • Wisconsin Agriculturist

Grain bank offers alternative for surplus

Farmers wondering where their operating capital will come from in the current bearish markets may find hope in a new "grain bank."

The National Farmers Organi-zation (NFO) is asking farmers to voluntarily hold 20% of their 1998 corn, wheat or soybean crop until suggested target prices are reached.

Randy Pederson, NFO grain department director, says the program is a self-help inventory management program for farmers; the organization provides the leadership. The program should isolate some grain stocks from the current market and create a positive psychological climate, Pederson says. A more positive climate should lead to better prices and thus more cash in hand for operating.In the program, farmers are asked to hold 20% of their crops until specific target price levels are achieved on the Chicago Board of Trade during 1999. The suggested target prices are $3.07/bu. for corn, $7.67/bu. for soybeans and $4.47/bu. for wheat. It's suggested that farmers then use incremental forward contract sales to avoid dumping grain on the market.

NFO will keep a database of farmers in the program and the grain being set aside. An NFO membership is not required to participate. Pederson reports that, since the organization first announced the program two months ago, it has received many calls from both NFO members and nonmembers.In the past, USDA implemented programs to manage excess grain supplies. But now, with the Freedom to Farm program, the burden to manage supplies falls on the farmer. The NFO believes that farm groups working together will successfully manage the supplies.

Contact the National Farmers Organization, Dept. FIN, 2505 Elwood Dr., Ames, IA 50010-2000, 800/247-8113.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish