Grain Programs

Target Averaging

 A twist on the traditional averaging contract, the Target Averaging contract only prices futures on days that the market is at or above a Target Price that you designate. When the average futures price is finalized, bushels may be delivered to the destination of your choice.

 How it Works: 

1.) Commit to a bushel amount. Tell us how many bushels you would like to enroll in the Target Averaging program. You can enroll in old crop and/or new crop pricing periods, just be sure to sign up prior to the enrollment deadline. 

2.) Designate a target price. The Target Price does not lock in a price, but it represents the minimum futures price at which you are willing to make sales. For example, you might select a Target Price that represents your breakeven price to ensure that you are only averaging on days when prices are above your cost of production. 

3.) Let the averaging begin! Each day the futures market settles above your Target Price, a few bushels are sold at that day’s settlement price. Each day the futures market settles below your Target Price, no bushels are sold, but they are put on hold and accumulated until the market returns to the Target Price. 

If the market never reaches the Target Price, then the bushels remain unsold. 

Please note: Depending on the Target Price you select and market action, there is no guarantee that your bushels will get priced.

2021 New Crop Average Price Program

 The 2021 New Crop Average Pricing Program does not require minimum bushels of corn or soybeans. Beginning March 3, pricing will continue in equal increments each Wednesday at approximately 12pm for 20 weeks, ending July 14, 2021. At the end of the pricing period, each producer will get a purchase pricing confirmation with the agreed upon bushels and the established average price. 

Commodity: Corn or Soybeans 

Quantity: No Minimum Bushels 

Contract Type: Cash or HTA 

Cash Delivery Location: Any River Valley Cooperative grain elevator. 

Delivery Month: Cash Contract will be for fall delivery. 

Pricing: Pricing will commence March 3, 2021 and will continue in equal increments each 

Wednesday at approximately 12pm for 20 weeks. The last pricing will be July 14, 2021. 

At the end of the pricing period each producer will get a purchase pricing confirmation with the agreed upon bushels and the established average price. 

Fees: Cash contracts will have no fees. HTA contracts will have a 5 cent service fee, which will be reflected in the average price.

Learn More

Target Averaging Pricing

Updated February 16, 2021