Farms Technology, of  Overland Park, Kan., and Bushmills Ethanol, of Atwater, Minn., is making available of the Dynamic Pricing Platform (patent pending), an online grain procurement application to central Minnesota corn growers.

DPP gives farmers the ability to create, manage, and monitor target priced cash grain offers that are evaluated in real-time with every tick of the futures market.  Growers don't have to be by a phone to call the local buyer to get the best prices. A variety of online marketing tools are available around-the-clock. These include: average pricing contracts, futures fixed contracts, basis contracts along with historical cash-pricing data, cash-bid sheets and local buyer commentaries.

Jason Tatge, Farms Technology's CEO, says, “Minnesota and Midwest cash-grain markets are changing rapidly. Cash prices are calculated by taking a futures exchange contract from the Chicago Board of Trade and the adding or subtracting the local delivery market’s basis.  Farmers and buyers have traditionally spoken two different languages. The farmer is concerned with the local buyer's price after the grain is delivered. The buyer is concerned with buying a certain basis level and getting that grain hedged. DPP allows both parties to speak in their own terms, while using the futures market volatility to dynamically create a match, notes Tatge. 

Buyers are able to get basis levels bought and farmers are able to get their asking prices because the DPP can monitor every offer with every fluctuation of futures prices.

“Ethanol plants tend to be progressive buyers.  They listen to farmers and are interested in using technologies that add value to their bottom lines today.  The fact that they haven’t bought corn the same way for the last 20-30 years puts them in a unique position. They see value in increasing buyer productivity rather than simply adding additional personnel and phone lines. 

DPP and Farms Technology are an independent neutral party who monitor offers on behalf of both the buyer and seller. One cent per bushel is the cost to use DPP's online cash grain trading platform if your sale is transacted (there is no fee to list your offer). 

Don Carlson, commodities manager, Bushmills, says “Producers are using the internet to check bids, now they can make marketing decisions when they have the time to digest all the info they have access to, in a very low pressure environment. 

Producers and other suppliers can learn more about online cash grain sales opportunities using the DPP service at www.farmstech.com, or by directly contacting Bushmills Ethanol grain buyer Don Carlson at (888) 287-4645.

Source: Farm Technology and Bushmills