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Cargill's ProPricing contract breaks $100 million mark in producer benefits

Agriculture.com Staff 08/02/2006 @ 3:30pm

Cargill today announced the launch of its 6th year of offering ProPricing® grain marketing contracts to farmers. Over the past five crop seasons, the program has generated in excess of $100 million to farmers' bottom lines compared to what farmers would have earned in the futures market at time of delivery.

First offered in 1999, the ProPricing family of contracts uses market averages and hedging experts to establish grain prices and thereby help relieve farmers of some of the pressure and emotion involved in grain marketing. Farmers are allowed to contract up to 50% of their expected production for corn, wheat or soybeans in a ProPricing offering, helping them diversify their grain-marketing portfolio while better managing the risks of a volatile commodities market.

"We developed the ProPricing contracts almost seven years ago in direct response to the needs of many of our farmer customers who asked for more help in marketing their grain. Since that time, we have experienced a tremendous growth in participation as well as solid marketing results for our ProPricing customers," said Dan Dye, president of Cargill AgHorizons.

This year, Cargill is introducing a new ProPricing contract offering called DiversiPro® that combines a commitment to deliver corn and soybeans under a single contract.

The DiversiPro contract is being offered along with three other ProPricing contracts, including ProPricing A+®; ProPricing MarketPros®; and ProPricing TargetRange®.

Cargill today announced the launch of its 6th year of offering ProPricing® grain marketing contracts to farmers. Over the past five crop seasons, the program has generated in excess of $100 million to farmers' bottom lines compared to what farmers would have earned in the futures market at time of delivery.

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