Unfortunately, most marketing services are always trying to “beat the market”; however, this approach is too focused on the past and future. The market soon becomes the primary focus, not the farm. This is speculating, not grain marketing.
True grain marketing is more about the revenue per acre and risk management. The only way to do a good job in marketing is to ask questions about the farm and the markets. Questions that address the how, the when, and the why of selling grain. By looking at these answers along with market fundamentals, a prudent and profitable grain marketing plan can be developed.
The Market Max program is different from other programs because it addresses the problem of speculation. When used correctly speculation can be very healthy and profitable. The problem which often occurs is the trap of speculation where one constantly focuses their energy on a moving target but never fires in hopes that something better will turn up. As a consequence the opportunities are always in the past. The very act of fixing the target means that you have an excellent chance of hitting it. This is essentially what the Market Max program does. It helps farmers decided where their target should be and then helps them hit it.
“The very act of fixing the target means that you have an excellent chance of hitting it.”Greg Petersen
This target just isn’t some arbitrary number; it is derived from a variety methods and reasons. Reasons like cash flow, market fundamentals, market risk, production risk, revenue per acre. Basically it is risk and reward based. By listening to the producer a market plan can be built to capture the rewards and mitigate the risk.
This system of marketing is called Market Max.