Forward Pricing Critical
(Continued from Page 1)
els of soybeans.
This year the elevator
moved more than 3.5 million
bushels of corn to customers
in the region.
At peak from mid-October
to the end of November, the
operation has as many as 20
trucks hauling out grain per
day.
The business has six
trucks, three on full-time
lease and four others are used
by full-time owner/operators.
When the business began,
said Ann Risser, the family
used “one driver and one
bin,” she said, with a laugh.
“We had no clue.”
But since the Norman
Wood Bridge opened up
York County regions, the
grain business blossomed
“beyond our wildest expecta
tions,” Ann said.
When they began the busi
ness, Ann noted that they en
joyed the excitement of
watching the Chicago Board
of Trade (CBOT), and the
Risser Grain operates this facility in Bloomsburg.
challenge, she said, of buying
and selling grain.
They also learned how to
operate an elevator simply
“hands-on,” she said, with
local mills.
Back then, Pennfield and
Wenger and lots of smaller
mills were busy, as they still
are. Right away the family
recognized “the best market
in the country,” said Brent
Risser, who helps market and
works on grain shipments.
“We’re grain deficient
here,” said Ann. Livestock
and poultry growout mana
gers feed more animals than
ever before in the region. And
dairy farms are getting larger
400-cow dairies are be
coming more common.
Big dairies require more
corn.
For corn growers, looking
at futures pricing continues
to be key to survivability.
The best deal occurred
early last summer, when
growers could sell October-
November corn at $2.80 a
Mark, left, and son Brent Risser stand at the second of two corn piles at the
farm in a year full of bounty. Photo by Andy Andrews, editor
Lancaster Farming, Saturday, March 3,2001, Corn Talk-
bushel, after reports came out
about a possible Midwest
drought. Some growers de
cided to sit on their corn.
But others could have used
the Loan Deficiency Payment
(LDP) schedule, locked in the
prices at $2.65-$2.80 per
bushel, and obtained an addi
tional 40 cents per bushel
from the LDP schedule.
The LDP began at 35-40
cents per bushel but now is 4
cents-per bushel on corn.
Many farmers don’t take
advantage of LDP because
they view it as “welfare,”
noted Brent.
1 Actually, it’s more like
social security, Ann noted.
Combining that with simple
forward pricing in this area
“works very, very well,” she
said.
Every day, Ann noted,
when producers call, she tries
to convince them of the im
portance of accepting LDP
on the corn.
There are several import
ant lessons, according to the
grain provider. Growers
should:
• Forward price as much
as possible. There are several
simple programs. Just talk to
a grain elevator manager.
•Be disciplined, Ann
noted. When a profit exists,
take it, she said.
• Know what government
programs are available and
participate in them.
• Don’t put corn in a bin
and hope to get a good price
for it.
• Be aware of where prices
of feed commodities are
going.
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