2011-2012 GRAIN POLICY
Effective 9/01/2011

STORAGE RATES

CORN, OATS, SOYBEANS:  A minimum of 10 cents per bushel will be assessed on corn and 13 cents on   beans that go into storage.  The minimum will cover 75 days from the average date of delivery.  After the initial 75 days, a fee of  .0012/bu. per day will be assessed on corn and .0015/bu per day  on beans.  Storage is subject to all applicable sales taxes. All storage charges for government loan or other storage programs must be paid in advance through the loan maturity.  Corn must be at 14.0% moisture to be receipted.  Soybeans must be 13.0% to be receipted.

GRACE PERIOD: EACH LOAD OF GRAIN DELIVERED WILL BE EXEMPT FROM ANY STORAGE CHARGES IF SOLD OR PRICED WITHIN 10 DAYS OF DELIVERY OF THAT LOAD.  AFTER 10 DAYS, THE GRAIN WILL BE CONSIDERED IN STORAGE AS NON-NEGOTIABLE WAREHOUSE RECEIPTS AND STORAGE MINIMUMS WILL BE CHARGED.

No negotiable warehouse receipts will be issued unless requested.  Copies of load sheets will be available upon request. Minimum storage charges are due at time of settlement. Additional storage will be accrued and billed January 31 due February 15 and May 31 due June 15 and August 31 due September 15.  Grain sold from storage will have remaining owed storage deducted from the check.

PRICE LATER CHARGES (Corn & Soybeans)
(New Crop Delivery)

A minimum of 10 cents for corn and soybeans will be due upon issuance of the price-later contract.  The minimum will cover the service charges to January 2nd, 2012.  On January 3rd, 2012, a fee of 1/10th of a cent/day will be assessed.  All contracts expire on July 31st, 2012. Any owed price later charges will be deducted at the time the grain is sold.  All Price Later service charges are subject to all applicable sales taxes.

DIRECT DELIVERIES TO PLANTS AND OTHER TERMINALS

A farmer may deliver direct to other terminals and the soybean plants for the account of the Farmers Coop Dows.  Before delivering please notify the Co-op.  All direct deliveries will be applied to contracts first. All overruns will be priced the day the Co-op is notified of the bushels over contract. If we do not receive notification before the delivery, the grain will be priced at the close of the day of delivery.  All direct delivery payments will be available the day after the Co-op receives settlement from end user. Price Later grain to be delivered direct must have Co-op approval before delivery. This would include over fills on contract grain.

DEFERRED PAYMENT CONTRACTS

Deferred Payment Contracts will be offered.  The contract must be signed prior to delivery or upon delivery.  Payment cannot be received until designated date per contract.   All applicable discounts will be invoiced to accounts receivable at time of settlement unless requested otherwise.

SOYBEANS

MOISTURE:  13.0% and below – no discounts.  Beans 14.0% and below will be averaged. Beans 14.1% and above will be kept separate, no averaging.  If beans average 13.1%-14.0%, a 2.2% per point shrink to 13% will be deducted. If beans average 14.1% and greater a 3.1% per point shrink to13% will be deducted.

DAMAGE:  Green beans will be considered foreign material.  Market scale of discounts to apply at time of delivery.

FOREIGN MATERIAL:  1% foreign material allowed.  Any sample in excess of 1% will be discounted the percentage over 1%.  No averaging on foreign material.

TEST WEIGHT:  A discount of 1cent per point below 54 pounds.

CORN

MOISTURE:  Corn delivered and sold, grain banked, or placed in Price Later will be dried to 15%.  Corn placed into storage (Negotiable W/R or Non-Negotiable W/R) will be dried to 14%.

SHRINK:  1.45% per point of moisture removed.

DRYING RATE:  4.25 cents per point of moisture removed. Loads of 16.0% moisture and above will be kept in one pool for averaging.  Loads 15.9% and below will be kept in another pool for averaging.

DAMAGE:  Corn that exceeds 5% in damage will be discounted.  Damage will be averaged if delivered during a specified time period.  Market scale of discounts to apply.

TEST WEIGHT:  Market scale of discounts to apply. Test weight will be averaged if delivered within a specified time frame.

FOREIGN MATERIAL:  Foreign material will be discounted above 3%.  Foreign material below 4.0% will be averaged if delivered within a specified time frame.  Loads above 4.1% and deliveries averaging over 3.0% will be discounted at the market scale of discounts.

GRAIN BANK:  Ask about current guidelines.

ALL INFORMATION ON THIS GRAIN POLICY IS SUBJECT TO CHANGE AT ANY TIME