1st Choice Energy N Phil 800-227-1062

1st Choice Energy Urbana 800-424-2584

Corporate
877-240-4393

Grain Programs and Policies

If you have any questions about the Grain Programs and Policies listed below, please contact our Grain Department. We'd be happy to provide further explanation.

Spot Sale

Grain is delivered to the elevator for the current cash price. Unless specified, bushels delivered for cash/spot sale will receive the closing price on the day the grain is delivered.

Fixed Price Contract

An agreement that establishes a fixed price, Chicago Board of Trade plus local basis, for a specified amount of grain to be delivered to a named location during an agreed upon delivery period.

Basis Contract

An agreement that establishes basis, which is the difference between the Chicago Board of Trade and the local cash grain price, for a specified amount of grain for any delivery period and location. The basis is the only fixed portion of the price. A monetary advance can be requested after delivery of the bushels. Final Pricing must be completed prior to an agreed upon expiration date.

Target Price Order

The customer sets a target price that if hit will result in a fixed price contract or as a pricing for delayed price bushels. If the target is hit the contract is written or the delayed price bushels are settled.

Hedge to Arrive Contract

An agreement that establishes the Chicago Board of Trade price for a specified amount of grain to be delivered to a named location during a specified delivery period. The delivery period cannot exceed 12 months from the contract date. The futures price is the only fixed portion of the price. Final pricing must be completed prior to an agreed upon expiration date or at time of delivery, whichever occurs first. Service fees will apply.

Delayed Price

Grain can be delivered to the elevator with title passing to Heritage Cooperative. The customer can price the grain for the current market price at a later date.

Open Storage

Grain is delivered to the elevator and title remains with the customer. Open storage is commonly used for government loan programs. Space available for open storage may be limited and storage rates will apply.

Deferred Payment

The customer may elect to defer payment for grain delivered against contracts or spot sales. Deferred payment periods are pre-set and current interest rates apply.

Brokerage Service

Brokerage services are available for producers interested in setting up hedging accounts for their personal farm operation and risk management practices.