Grain & Oilseed producers have several marketing options available to them for grain, by virtue of GEC grain pooling arrangements. These products; once placed within the pools are also hedged whenever there is an opportunity, thus price risk is managed and minimized. Through such a scheme, participants receive an average of all prices received throughout the marketing year plus any hedging income and are assessed a minimal Standard Operating Cost (SOC) for GEC services. In accordance with its statutory requirements and completion of the annual audit, GEC Directors settle the crop year pools with final grower cheques mailed in December or earlier each year.
Pool performance results are published in the Annual Report to the Legislature, available through Island Information Service, Charlottetown, the GEC administrative office, Kensington P.E.I. or the P.E.I. Department of Agriculture & Land 5th Floor Jones Building, Information section. Grain Growers also have the opportunity to sell their grain on the open market with prices established daily and the proportion to be sold in this manner set by GEC. The business will offer contracts where export grade specifications can be met. Forward contracts may soon be expected for crops where this opportunity exists and, specifications can be met or exceeded.
While GEC soybean pooling arrangements remain, growth in soybean production has been associated with greater demand for locked in forward contract pricing. GEC has responded to this through its offering of forward pricing contracts, available as a result of the business relationships that have been developed with a number of national grain companies, local brokerage firms or processing plants in the Atlantic Provinces, Quebec or Europe. More competition means potential for an improved basis; clearly attractive to growers. The reader is encouraged to contact Neil Campbell, General Manager, at 902-836-8942 for a competitive price quote.
On the other hand, there remains the opportunity to market all or part of the crop through the traditional soybean pooling arrangement. In times of unsettled prices, pooling can remain a viable and attractive option.