Which Marketing Alternatives Are Really Good For You?

The tools you use to sell your grain will impact you in a number of different ways. Here are some things you should consider when you're deciding what marketing alternatives to use.

Does this alternative eliminate my downside risk?
Price movements create opportunity, but they also expose you to tremendous risk if you are unprotected from lower price movements.

Does this alternative eliminate or at least limit additional costs of marketing?
Even when prices do improve after harvest, money lost in storage fees, interest fees, and other costs of after-harvest marketing can easily match or exceed any increase in the price.

When do I get paid?
You can only stop interest costs by receiving a check, so getting your money as early as possible is the best way to eliminate these extra costs.

Does this marketing alternative give me upside price potential?
Be careful! This question can be a dangerous one.  Locking in a reasonable return and protecting your working capital should be your most important goal.  However, if upside potential is essential to your decision to sell, make sure you select a marketing alternative that allows upside potential while eliminating downside risk. 

Does this alternative create unnecessary stress?
While it may not come up in conversation often, certain marketing alternatives create more stress than others. Any time you are paying to store grain that you haven't decided how to sell yet and are subject to downside risk, you are in a stressful position. Be wary of marketing alternatives that leave selling decisions unmade.