2011 FALL HARVEST GRAIN POLICIES

The following grain policies will be in effect on all grain delivered to our warehouses on or after September 12, 2011.

No open storage or warehouse receipts will be available for soybeans this year. The only option available for soybeans will be Delayed Pricing contract. Open storage and warehouse receipts for loan purposes will be available for corn and milo. If you are requesting a warehouse receipt please be aware that they are issued from the Hastings office. To initiate the process of obtaining a warehouse receipt, contact your branch manager and they will request it from the Hastings office. The receipt will be returned to the branch office that requested it unless we are instructed otherwise. All prepaid storage, drying and cash discounts must be paid at the time the receipt is picked up.

Grain is considered to be in open storage 15 days after delivery. If any changes in storage policies are warranted then location managers will post those changes in their offices. We suggest that you check periodically to see if any changes have been made.

If you have new delivery accounts that need to be set up please contact the staff at the location you deliver to so they can have them set up prior to delivery of grain this fall.

To prevent errors, we request that you verify with our personnel, the total number of loads delivered at the time of settlement. We ask you to do this as it reduces the possibility of posting errors and increases our timeliness on writing your checks. We will not write any checks unless loads are verified. Due to reduced office staff on Saturday, we will not settle any grain that day. We will write down your instructions and give them to our grain accounting department on Monday morning for settlement. Checks will not be issued until you instruct us to do so. This precaution is taken to reduce errors along with extra work if you wish to defer the income from the sale into the following year.

Grain will be considered to be in open storage 15 days after delivery unless applied to a cash grain contract requiring delivery of grain this fall.

The first grain delivered will be considered grain delivered on contract. If the customer has a condo storage agreement, that storage will be filled after his contracts are filled per customer’s instructions.

Grain in open storage will be purchased at the cash bid for the current delivery period at the location it was delivered to unless you own condo storage. Grain that is sold for delivery in deferred months must be delivered during the delivery period it was sold for. If you have a contract that calls for delivery in a deferred month and will deliver that grain during harvest please contact us prior to delivery so we can re-work the delivery time and price for that grain.

Deferred contracts are available to defer the income from the sale of grain into January of 2012 without interest. Once this contract is issued this contract can’t be voided. Be sure you know your tax situation before you choose the deferred payment option.

We must have either written or verbal approval from you for the release of any delivery / settlement sheets or other information to any third party other than the FSA office. Your information will not be given to anyone other than yourself or a landlord, in the event his or her name is on the delivery sheet.

HELPFUL HINTS WHEN DELIVERING YOUR GRAIN AT HARVEST

• When coming on to the scale, display a sign in the window showing tenant and landlord(s) name and splits. It is also helpful to place the account number on the sign.        
• Make sure your driver is aware of whose grain they are delivering. Have the driver check the ticket for the correct account before they leave the scale.
• Please notify the scale operator when the last load is delivered off a particular split.
• All grain delivered will be available for settlement the day following delivery.
• When you call to settle grain, please inform our grain accounting personnel who you are, who your landlord/tenant is, the division of the grain and what grain is involved.
• Checks will be held for you to pick up at your branch unless we are instructed to mail them.
• If you want grain sold as it is delivered, please make the scale operator aware of your request and that the ticket is marked accordingly. The price for such grain will be the closing bid for that grain at the location it was delivered to.

 

CORN AND MILO DISCOUNTS FOR ALL LOCATIONS

CORN -

DRYING - 1½% shrink and 5.5¢ per bushel drying each point 15.1% to 20.0%. Shrink and drying will be calculated on a load-by-load basis at delivery. Shrink and drying calculated to each 1/10^th point.
Test Weight - 1¢ ea pound 53.9 - 50.0 - 2¢ ea pound 49.9 – 47.0
See discount schedule for other factors.
STORAGE - Open storage or warehouse receipt - $.0015 per bushel per day ($.5475 per year). Warehouse receipt will be shrunk to 14.0% moisture.

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MILO -

DRYING - 1½% shrink and 6.0¢ per bushel drying each point 14.1% to 18.0 Shrink and drying will be calculated on a load-by-load basis at delivery. Shrink and drying calculated to each 1/10^th point.
Test Weight - 1¢ ea pound 54.9 – 45.0
See discount schedule for other factors.                    
STORAGE - Open storage or warehouse receipt - $.0015 per bushel per day ($.5475¢ per year). Warehouse receipt will be shrunk to 14.0% moisture.

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SOYBEAN DISCOUNTS FOR ALL LOCATIONS

DRYING – 2.5% shrink each point 13.1% to 14.5 % moisture.
                 4.0% shrink each point 14.6% moisture and above.
                Shrink calculated to each 1/10^th point.
FM - All FM over 1.0% will be deducted from each load.
All moisture shrink, FM, test weight and splits will be calculated on a load by load basis at delivery.
See discount schedule for other factors.

SPLITS             -           Discount                   TEST WEIGHT –   Discount
20.0% or less                .0000¢                   53.9-53.0              .005 ¢/bu
20.1% to 25.0%             .0025¢                   52.9-52.0              .010 ¢/bu
25.1% to 30.0%             .0050¢                   51.9-51.0              .015 ¢bu
30.1% to 35.0%             .0075¢                   50.9-50.0              .020 ¢bu      
35.1% to 40.0%             .0100¢                   49.9-49.0              .025 ¢bu      
40.1% to 45.0%             .0150¢

STORAGE – No open storage or warehouse receipts available. DP service charges are: $.001315 per bushel per day 10-1-11 until the day they are priced. ($.4800 per year).

All grain subject to rejection at our discretion due to off grade or distinct low quality

GRAIN TAX

CORN - $0.0025 per bushel – State check off

MILO – $0.0056 per bushel - State check off

.60%( 6/10 of a percent) of the cash price per bushel – National check off

SOYBEANS- .50% (½ percent) of the cash price per bushel

ETHANOL TAX

CORN - $0.00875 per bushel.

MILO - $0.0049 per bushel.