Bringing producers and industry together.

Frequently Asked Questions

Question: I want to sell some grain, but I don’t want the income now.

Answer: TMA allows the producer to defer income into the next calendar year, if the producer thinks he/she might have a tax problem in the current year. Depending on the time of the year, TMA will also pay interest on the use of the money. Payment on the deferred contract is customized to fit your year end.

Question: I want to contract grain for delivery to the local, but I’d like to be able to take it to the terminal. Can I change the destination?

Answer: TMA has working relationships with many terminals and end-users in our trade territory. If the contract is written for delivery to a local elevator and the market dictates that you should deliver to a terminal, just let your TMA Grain Marketing Specialist or the TMA office know your intentions. Your contract will be amended to reflect the change in price between the two facilities. TMA’s flexible delivery contracts offers producers the ultimate tool in maximizing their farm’s profit, while only dealing with one company.

Question: I need to sell some grain today, but I think the market will go up. What can I do?

Answer: TMA has two contracts that can be used to remain in the market for potential upside opportunity. They are the Minimum Price Contract (MPC) and the Foundation Contract. The Minimum Price Contract is similar to buying a call option. The Foundation Contract guarantees the higher of the average futures level or a floor price. Both contracts stop storage and interest and give you access to your money. , Both contracts allow you to participate should the market go up but the degree of participation varies. The bushel requirement of the two also varies. Your TMA Grain Marketing Specialist can explain the advantages and differences between the Minimum Price Contract and the Foundation Contract.

Question: Why do we only buy during market hours?

Answer: Today’s record volatility has made the grain industry and TMA evaluate the amount of risk our company is willing to accept. Buying grain during market trading hours of 8:30 A.M. to 1:15 P.M. allows our producers to sell and capture the true value of their grain.

Question: Does TMA make more money when the market goes up $3.00 per bushel?

Answer: No, when the futures market increases, our interest cost to fund the margin calls also increases. TMA’s profits are arrived by market intelligence, basis, and utilization of grain storage space. TMA is a true grain hedging company that uses the futures market to manage and offset the risk of purchasing grain. When producer’s sell their grain to TMA, we automatically offset the risk of owning the grain by selling it on the futures market. TMA’s profit is the same if we buy the grain at $3.00 per bushel or $10.00 per bushel. We are basis traders.

Question: Where can I pick up a check for grain delivered to TMA either locally or direct to end users / terminals?

Answer: You can settle your grain contracts and pick up your check for grain sold to TMA at nearly thirty different locations in central Kansas. A complete list of locations and contact information is located on the TMA website. As long as the tickets have been verified, producers can sell their grain and pick up a check at any one of these locations.

Question: Why would I deliver to someone else’s elevator under the TMA name?

Answer: Every grain elevator has restrictions on the grade, type, and moisture levels of each commodity. Because you can’t always predict what type of crop you will grow, TMA will allow you to take your grain where the market tells you. Because the elevator can only handle grain at a certain moisture level doesn’t mean you can’t harvest, it just means you need to market your grain through TMA and find the market for your grain. Producers who market or deliver grain through TMA will be able to do all of their accounting in one office, as well as check delivery tickets online through Patron Access. TMA is the only grain marketing company that allows you to change your contracted delivery point to fit your farm’s needs.

Question: Explain the difference in price between TMA country houses and end users / terminals?

Answer: The 48 different local elevators that make up TMA are collection points for grain. These locations provide the end users and terminals within the territory a constant supply of grain. Since our facilities are an intermediary stop before going to the end users or terminal market, there will always be a pricing difference. This difference is determined by the cost of transportation, value of the grain, operating expense, and margin. These factors are the main reason for the pricing differential between the local elevator and the end user. Without a margin, the member coop’s that make up TMA would not be able to continually improve the unloading experience at their facilities.

Question: Why do the price spreads between locals and certain terminals sometimes vary ( i.e. Groveland beans)?

Answer: TMA bases their local cash prices off the best available market less freight and margin. When the best available market switches during the course of harvest, the price differential between two locations will change.