2017 Fall Farm Outlook

Page 34 Oct. 25, 2017 2017 Logan County Fall Farm Outlook Magazine LINCOLN DAILY NEWS All farmers strive to maintain the quality of grain in the bin, but face it, freaky things can happen that could impact the quality of the product. If it does and the grain is under contract, the farmer may have to figure out how to come up with the product he or she promised at the quality promised. If the producer stores grain at an elevator, then the role of warehouseman is passed on to the elevator, and along with it, the burden of maintaining the grade or quality of the product. Though today’s producers are much more highly educated as well as tech savvy over the previous generations, the odds are that he or she is not qualified to act as a licensed agent or broker, so finding a reliable broker to assist with the process will be a key component to direct selling. WiseGeek.com offers the following description of a grain broker: To become a grain broker, it is usually necessary to have a bachelor’s degree in a field related to finance or agriculture. Some have degrees in public relations and communications, because communication is key to being an effective broker. Brokers can work for a brokerage under more experienced brokers or they may operate independently. On a local level, a single broker may be able to handle the day’s business, while brokers who work with commodity exchanges usually need the support of a large office with numerous personnel. The grain broker typically takes brokerage fees for every deal arranged. These may include flat fees per unit of grain in addition to percentage fees based on the amount of the deal. The broker discloses these fees up front so that buyers and sellers can decide whether or not the fees are acceptable. Brokers who charge high fees may also offer special services as an incentive for people who might otherwise turn down a relationship with the broker on the basis of cost. Working as a grain broker requires a knowledge of the commodities market as well as the ability to predict, at least to some extent, market movements. A broker who does not think ahead can end up with unsatisfied clients such as buyers who pay too much for a grain which falls out of favor or is produced in surplus or sellers who are angry that their grain sold at a price lower than it deserved. However, even with the best skills and years of experience, a grain broker ultimately cannot make predictions about market movements with confidence. Continued ►►