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University of Tennessee, Knoxville

2003

Marketing, Finances and Value-Added Agriculture

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Pb1770-A Guide For Considering And Developing A Farmers Market In Tennessee, The University Of Tennessee Agricultural Extension Service Dec 2003

Pb1770-A Guide For Considering And Developing A Farmers Market In Tennessee, The University Of Tennessee Agricultural Extension Service

Marketing, Finances and Value-Added Agriculture

Soybean farmers face a variety of marketing alternatives each year. Selling to a grain buyer at harvest is one way to sell soybeans. Another alternative is to store soybeans (either commercially or on-farm) and sell them later. Farmers may also set a price for their soybeans before harvest by signing a cash-forward contract with a grain buyer. The contract specifi es the quantity, price, grade, quality and date of delivery. Because prices have been historically lowest during harvest, storing and cash-forward contracting are ways to price soybeans before or after the harvest season, in hopes of achieving higher prices.