Buying and Selling Organic Field Crops
As of February 1st, 2012.
Consult our buy and sell prices for the 2011 harvest with our purchase offers for the spring and summer of 2012. These change on a monthly basis, so come back often.
For the buckwheat market, please review our buckwheat page
Market pressure seems to have stabilized, at least for the moment.
On one hand, upward price pressure persists. Demand remains strong as organic consumers regain confidence in the economy and re-affirm their commitment to organic food. The US poultry market is particularly strong. Poultry and hog production in Ontario is growing quickly. The organic sector in general is growing by about 10-15% this year across North America. Supply is weak because we lost many growers who switched to conventional production in 2010 when prices were low.
On the other hand, imports of soybeans from India and South America are plentiful. This places a cap on upward price movement. There is plenty of wheat in the prairies to replace some corn in the livestock diets. Among consumers there is strong resistance to the current high prices of grains. The US dairy market is stagnating because of high prices and some US dairy farmers are switching back to conventional because of feed prices. The Ontario poultry sector has reached a price limit among consumers.
The future is uncertain. I beleive that prices have peaked and will drop somewhat by spring. On one hand, the high prices will cause customers to pull back. Secondly, the world economy is scary. Thirdly, the 2011 crop is plentiful and buyers will calm down as they realize how much inventory is available.
In case you are wondering what to grow, it is hard to go wrong. Stick to your soil conditions and your crop rotation and do not let the market mess up your farm's sustainability. While you are thinking about your 2011 plans, please consult our seed catalogue.
Forward contracts, signed either before or after harvest, come with a fixed price and a fixed payment schedule. Forward contracts are offered for delivery in a specific month on a first-come-first-serve basis. Contracts before harvest are based on planted acres and the actual harvest. Contracts after harvest are based on the tonnes in your bin.
Secondly, we make spot purchases at a negotiated price to fill gaps in the harvest or to meet new opportunities in our marketing. Farmers may want to decline a forward contract and hold their crop until they are satisfied with the market price, but they run the risk that we may not need their crop when they want to sell.
Please call or write to Tom to discuss your crop and marketing plan.