Patience (Also Known As "Cash Flow") Needed When Marketing Low Quality Grain


A creative and patient approach to marketing will be needed to maximize returns on the lower quality crop produced in Western Canada this year, suggests a farm management specialist with Manitoba Agriculture.

Poor weather during the growing season and at harvest has resulted in a wide range of downgrading factors, including fusarium, mildew, sprouting and frost.

As part of the interview below, Gary Smart offers some advice for finding the best value for downgraded grain.

“The biggest message I can say is for farmers to not panic with the initial grade, as grain companies will definitely work with them. Their profit depends on handle as well, so they’re going to continue to look for end-markets for that crop,” he says.

He says patience can pay off when selling lower quality grain.

“If producers have the luxury of holding on for a little longer, you never know what opportunities may arise, as the end-users try to find a home for it,” adds Smart, noting producers may have to apply for cash advances or other forms of financing to pay bills in the meantime.

Click here if you can’t see the audio.

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