AgriPlus is Commstock Investments answer to market volatility. We provide professional grain marketing service for those producers or grain elevators that just want to focus on the production.
U.S. farmers are the best producers in the world, but producing a crop is only half of the profit equation. Our goal is to market corn and soybeans at a higher average sale price, capturing marketing opportunity that will boost revenues. Solid marketing with experience is required. Marketing bushels takes time, patience, knowledge of the markets, expertise, and an unemotional attachment to the sale. That is what the management team at AgriPlus can deliver.Contact Us
What are AgriPlus’ goals for sale price of your bushels?
AgriPlus goals are based on an average cost of production and set targets of profitability. Our objective is to increase average crop revenue. Our sale targets are weighted towards profit triggers rather than based on market outlook. Return on investment can be taken to the bank while marketing to a given outlook often increases risk.
Why does AgriPlus recommend doing everything from start to finish, including the recommendation of cash sales?
There are multiple reasons that we prefer to handle every aspect of the managed bushels program, but the primary reason is that AgriPlus will run the program from a financial standpoint to remove emotion from marketing decisions. When we make a recommendation, it makes it more likely that it will get executed. In this manner, we ensure that everything gets accurately marketed as advised.
What is the role of Commstock Investments?
Commstock Investments is a clear facilitator for the managed bushels program. It is the parent company for AgriPlus and will execute future and options transactions at AgriPlus’ discretion. Futures and options transactions may be recommended at times that will assist in protecting your crop revenue – providing hedge opportunities. These traders are not required, but may be recommended.
What is the minimum enrollment of bushels to the program?
We recommend enrolling 15% to 20% of your production, with a minimum of 4,000 bushels accepted for the soybean program and a minimum of 10,000 bushels in the corn program.
What is the length of the program?
We realize that the best time to market a crop ma occur before it is even planted. To help address this fact, we have set up a 14 month rotating program. Our program’s time cycle starts on October 1st of the prior production year, running until December 31st of the actual production year. We believe this time frame will allow us opportunities to market at profitable levels. We are now accepting enrollment for the current crop year.
What is the cost of using AgriPlus to manage my bushels?
The cost for your program is 7 cents a bushel for corn, 13 cents a bushel for beans. Cash sales recommendations will be sent to you via phone call, text, or email from AgriPlus.
What are price targets and goals within a marketing period?
Our primary goal is to market at the best return we can achieve. Although we are aiming for high returns, we understand that sometimes the markets may not allow optimal selling opportunities and we will handle these situations on a best opportunity basis when they occur.
Are we obligated to market all bushels?
The bushels you pledge to AgriPlus will be totally marketed by us, with our soft goal expecting to be completed by harvest of that year’s crop. If the markets haven’t given us what you need as far as achieving profitable price objectives, we will grant an extension to that year’s marketing program until we have every bushel marketed.
What if I didn’t hear about your program until it already began for the current marketing year for corn/soybean crops beginning October 1st?
We will accept bushels into the program until January 1st of the next year if there is only a marginal change in the program’s positions from our launch date.
What is payment of fees due?
Payment of fees is due upon signing of the contract with AgriPlus.
What does it take to be a qualifed investor in AgriPlus?
Strong Financial Standing
- Not needing to sell these bushels for targeted cash flow commitments.
- Banker who is aware of the potential for margin call needs for your managed bushel (if you would like us to explain this program to your lender, we are happy to do so).
- Knowledge that the outcome of our marketing program should not stress your buoyancy as a business.
Checklist for Potential Clients:
- Do you have a strong understanding of the futures/options market?
- Do you understand the potential for loss within these markets?
- Do you need these bushels sold prior to final trading date for cash flow purposes on your farm?
- Are you willing to commit yourself, and us, the intention of giving this program time to work for you to show you the most complete picture of our overall performance?