Kansas Farmers Union and National Farmers (NFO) have always had a good working relationship over the years, and a new grain marketing agreement between the two organizations will now help our members’ and KFU’s bottom line.
NFO grain marketing representative Pete Lorenz spoke at KFU’s annual convention last December about the benefits of marketing grain through NFO. After visiting with Lorenz about other groups that have developed grain marketing agreements, KFU’s Board of Directors agreed to pursue an agreement that its members could participate in, if they so choose.
In the agreement, NFO is responsible for all market development, marketing and selling of the grain, and dealing with buyers and potential buyers, including scheduling deliveries and providing information with respect to the creditworthiness of buyers.
NFO will provide management oversight of services with regard to delivery of the grain under the sales agreements, including sales notification to farmers, modifications to the Grain Marketing Agreement, and sales confirmation to buyers.
NFO will provide accounting and inventory management services, including invoicing. NFO will make a written detailed statement each month, showing the business done the previous month, and provide those statements to KFU where they will be filed.
NFO’s fee for services rendered will be seven (7) cents per bushel of grain sold for KFU members. Two (2) cents per bushel will be collected from the producer when the grain is placed with NFO for sale. KFU will receive one cent for every bushel sold. The remaining six (6) cents will cover NFO’s marketing costs. Proceeds from the sale of grain will be paid directly to the producer by the buyer.
For more information about the KFU-NFO grain marketing agreement, please contact Pete Lorenz at (785) 545-8519.
Find all the articles from the Spring 2016 edition of the Kansas Kontact here.
