General Information &  Grain Policies

Legacy Grain is open for business from 7:00 am to 4:00 pm - Monday through Friday and Closed Saturday and Sunday, except during harvest periods when hours are extended. Harvest hours are determined on a daily basis and may vary by location.

Grain bids are good and firm only for the moment that they are stated.

Grain prices at all facilities will be a function of the best bid available, transportation differential between locations and the market destination. Therefore, the bid price for commodities may differ between locations.

During harvest settlements for grain delivered will be closed the day after the last load is called, provided that all delivery information has been supplied to Legacy Grain.

During non-harvest time settlements will be closed upon request of the customer.

Deferred Payment options are offered for those who sell their grain but want to defer the payment of income to a later date. This option cannot be backdated.

If a patron is in need of funds, an advance payment can be issued once substantial grain has been delivered to cover the amount of the advancement.

 

Grain Deliveries

All grain delivered must fall into one of the following categories and will be applied in the same order:

• Purchase Contract
• Storage
• Grain Bank
• Price Later
• Cash

Grain Delivered for storage or price later that is sold or priced within 5 days of that load delivery date will have no storage or service charge assessed against it.

If a producer prefers grain to be applied in a different order then stated above, it is his responsibility to inform the elevator on the "First Load Sheet" of the grain delivered.

Grain delivered without previous arrangements will be considered Stored grain. This includes grain delivered in excess of all contracts.

It is the producer’s responsibility to inform the elevator on the first load of grain delivered the proper ownership, division, and any irregularities which may be involved such as grain kept at home, seed, etc.

 

Types of Grain Contracts Legacy Grain Offers:

Offers to Sell Grain

If a producer offers to sell grain at a price higher than the current market price, a grain offer contract will be issued.

It is the producer’s responsibility to cancel the offer if he decides to sell this grain at a lower price. If a customer wishes to cancel a grain offer, he can notify the elevator either in person or by phone.

All grain offers are good until they are filled or cancelled by the patron.

When placing an offer to sell grain, the following information must be supplied.

• Name of Producer
• Commodity
• Bushel Quantity
• Price Desired
• Delivery Period
• Delivery Origin
• Delivery Destination

Grain offers will be booked at the price indicated on the offer contract.

Purchase Contracts

A purchase contract is issued when grain is purchased for a future delivery date. Grain purchase contracts contain the following information

• Date of Sale
• Name of seller or sellers
• Bushel Quantity
• Grade
• Price
• Delivery destination
• Delivery period
• Grain origin (From the farm, storage, price later or warehouse receipt)

When pricing stored or price later grain, it is the seller's responsibility to specify the exact number of bushels being sold or priced.

All grain purchase contracts are issued in duplicate and the seller and the buyer must sign all contracts. Both the original and copy will be mailed to the seller. It is the seller's responsibility to sign and return the original to the buyer. It is also the seller's responsibility to notify the elevator if a confirmation of the sale is not received within one week from the sale date.

Every effort is made to monitor grain purchase contracts but it is the seller's responsibility to notify the elevator within one week of any discrepancy pertaining to the contract. Discrepancies will be adjusted as of the contract date and any gain or loss will be for the buyer's account.

Shortage and Cancellation of Purchase Contracts

Legacy Grain Cooperative is a cash buyer of grain, not a brokerage firm. Therefore, producers are cautioned not to sell grain that they do not intend to deliver. Situations may arise that result in a shortage or a necessity to cancel a Purchase Contract. If this occurs, it will be handled in the following manner:

• In case of shortage, if the market is higher than the contract price, the producer will be charged the market difference plus 5 cents per bushel for each bushel of shortage. If the market is lower than the contract price, the elevator will pay the difference to the customer less 5 cents per bushel for each bushel of shortage.
• In order to cancel a purchase contract, the Chicago Board of Trade must be in open session.
• In figuring the difference between the contract price and the price to be used for determining the gain or loss, the cash bid on the day of cancellation will be calculated at the current cash price for corresponding delivery periods.
• It is the producer’s responsibility to check on bushels delivered against purchased contracts in order to determine if there is a shortage. Deliveries will be monitored and the contract shortage will be figured as soon as the information is available to the buyer.

Price Later Contracts

Price Later contracts are strictly governed by the Illinois Department of Agriculture. A Price Later contract must be signed, dated and returned to the elevator within 30 days of the last day of delivery. Failure to do so will result in the grain being priced at the close of business on the 30th day.

The title to grain sold by price later contracts transfer to the elevator immediately upon delivery of the grain. A producer may deliver grain towards a price later contract when it is offered by Legacy Grain Cooperative.

A price later contract must be signed and dated by the seller and buyer within 30 days of the delivery. The contract will be mailed in duplicate to the seller upon delivery completion. It is the seller’s responsibility to sign, date and return the original to the buyer immediately upon receiving.  The elevator must price the grain at the closing market price on the 30th day if the contract is not signed, dated and returned within the 30 days as stated in the Illinois Grain Code.

The grain may be priced any day prior to the expiration date of the contract. If it is not priced before the expiration date, the buyer will automatically price the grain for the seller on the contract expiration date.

Grain delivered to Price Later Contracts are shrank down to 15.0% moisture and carry a different rate of storage. Price Later contracts are not always available for use, Legacy Grain will give notice when we are offering this type of contract.

Hedge-To-Arrive

Hedge to arrive contracts is the locking in of a futures price with the basis to be determined at a later date. The possible advantage to this contract would be in basis appreciation at delivery or expiration of the future month. The price received is the futures price you locked in, less the basis at the time of sale. The price must be established before delivery is made.

Basis Contracts

A Basis contract allows the producer to set the basis which is the difference between the Chicago Board of Trade price and Legacy Grain's bid price. A producer might use this contract when the basis is very narrow and believes that at delivery the basis would widen out. The contract allows you to lock in a basis that is over or under a specific futures contract. Price received is the futures month price, plus or minus the basis level agreed to in the contract.

Open Storage

Open Storage allows the producer a safe and worry free way to hold his grain. Once delivered to Open Storage it is the Elevator's responsibility to maintain the quality of the grain.

In order to meet storage requirements: Corn is shrank to 14.5% moisture, Soybeans are reduced to 13.0% moisture and Wheat to 13.5% moisture.

Storage begins five days after the load is delivered.

Grain sold within 5 days of that load delivery date will not be charged storage.

Storage is charged on net bushels after shrink and deduction for foreign material.

Grain that is stored for an entire marketing year will be assessed and charged storage at the end of August of the following year. Payment for this storage must be made by the 15th of September.

All Corn and Soybean loads delivered at harvest will be shrank on a load by load basis.

Corn delivered after harvest will be shrunk on an average moisture basis and drying will be applied at the same average moisture.

Corn must be 14.5% moisture or below without discount

Soybeans must be 13.0% Moisture or below without discount

Wheat must be 13.5% moisture or below with discount

Eligible to receive Warehouse Receipt for government loan

Storage Rates

Corn – (Open Storage) - Minimum charge of $0.12 per bushel will be assessed 5 days after delivery on bushels that are not sold and then $0.00133 per bushel per day charge until the corn is sold.

Corn -  (Price Later) – Minimum charge of $0.10 per bushel will be assessed 5 days after delivery on bushels that are not sold, and then $0.00133 per bushel per day charge until corn is sold.

FOR PRICE LATER - **Must notify location office as soon as sheet is finished! Contract is to be signed & returned no later than 30 days after last date of delivery!  If contract is not signed & returned within 30 days, per Illinois Dept of Ag guidelines, grain will be priced @ end of business on the 30^th day.**

Soybeans – (Open Storage) - Minimum charge of $0.12 per bushel will be assessed 5 days after delivery on bushels that are not sold and then $0.00133 per bushel per day charge until the soybeans are sold.

Soybean-  (Price Later) – Minimum charge of $0.10 per bushel will be assessed 5 days after delivery on bushels that are not sold, and then $0.00133 per bushel per day charge until corn is sold.

FOR PRICE LATER - **Must notify location office as soon as sheet is finished! Contract is to be signed & returned no later than 30 days after last date of delivery!  If contract is not signed & returned within 30 days, per Illinois Dept of Ag guidelines, grain will be priced @ end of business on the 30^th day.**

 

Grain Discount Schedule

Corn delivered at harvest will be discounted on a load by load basis.  Post-harvest delivered corn (exact time to be determined at a later date) will be discounted on a weighted average basis.

#2 Yellow Shelled Corn

All soybeans discounts are discounted on a load by load basis.

#2 Yellow Soybeans

#2 Soft Red Winter Wheat

Other Factors For All Grains

All discounts are subject to change.

Grain Testing & Grading Procedures

Yellow Shelled Corn moistures will be based on a load by load basis: 14.5% for storage and 15.0% for cash, contracts, and delayed pricing.

Yellow Soybean moistures will be based on a load by load basis. Moisture of 13.0% or below will be considered dry. Soybeans over 17.0% moisture are subject to rejection.

Soft Red Winter Wheat moistures will be based on a load by load basis.  Moistures 12.0% or less will be considered dry. Wheat over 16.0% moisture are subject to rejection.

Each load of grain delivered will be tested for moisture and quality.

Warehouse Receipts

A producer may request a negotiable warehouse receipt for grain delivered and placed on storage. A negotiable receipt enables the producer to obtain a government loan on the number of bushels stated on the receipt.
When requesting a warehouse receipt for loan purposes, the producer must provide the following information to the elevator.


·         Producer’s name as listed at the Farm Service Agency

·         Commodity to be receipted (Corn, Soybean, Wheat)

·         Bushel volume to be listed on receipt

·         Month when loan application will be made

·         County that will issue the loan

Corn is dried and shrank to 14.5% moisture on the warehouse receipt; wet and dry bushels are stated on the receipt. The FSA will discount the producer $0.005 per bushel because FSA requires 14.0% moisture corn for loan. The FSA discount is less costly to the producer than if the elevator dried the corn to 14.0%, which would result in an additional drying charge of $0.175 per bushel. A corn delivery that averages 14.0% will be issued on the receipt as 14.0% resulting in no FSA discount.

Storage charges for the duration of the loan (9 months), drying charges and all other discounts pertaining to the receipted grain must be paid to the elevator before the warehouse receipt will be released to the producer. The producer will be reimbursed for any storage prepaid but not utilized if the grain is sold before loan maturity.

When a producer sells Warehouse receipted grain, the elevator will notify the FSA of the sale and issue payment to the FSA for the outstanding balance of the loan. After receiving payment, the FSA will release the warehouse receipt to Legacy Grain and in turn payment will be issued to the producer for the balance of the sale (grain sale, less FSA payment, plus any prepaid storage reimbursement.) Payment cannot be released to the producer until the receipt is received by Legacy Grain.

A negotiable warehouse receipt is a legally binding document. If the receipt is lost or destroyed while in the producer’s possession a bonding procedure is required before payment can be issued for the grain listed on the receipt. The producer pays for the bonding, which is for the value of the grain at the time of the bond application. The bond remains in effect until the warehouse receipt is found and turned over to the elevator. If destroyed, the bond remains in effect indefinitely. Legacy Grain will assist the producer with the bonding if this situation occurs.

Grain Purchased for Direct Delivery (Terminal or Processor)

We offer a direct delivery bid to local markets. Direct delivery grain bids will be the terminal or processor price.

The seller will be charged for all weighing and inspection fees assessed by the terminal or processor.

Destination grading and discount scales apply to direct deliveries.

Payment for direct delivered grain will only be issued after Legacy Grain has received settlement funds from the terminal or processor. Contract advance payments will not be issued.

Delivery arrangements and delivery charges are the seller's responsibility.

Direct delivery tickets weights must be turned into Legacy Grain, either by phone or in person on the day of delivery.

Grain must be delivered for the entire amount of the contract to the destination stated on the contract.

It is the discretion of the Manager to bid only to present customers or ones he feels could become regular patrons.

Grain purchased for direct delivery does not participate in regular patronage refunds declared by the Board of Directors.

Freight

Legacy Grain Cooperative offers a service of hauling grain from the farm. The fee for this hauling can be deducted from the settlement. Our trucks can be rented on an hourly basis. The hourly rates will vary depending on load out times, distance to the markets, and etc. Please contact Kevin Walker, Mike Snyder, or Matt Moma at our Stonington Office (PH: 217-325-3211) for more information or a quote.