PROFESSIONAL MERCHANDISING FOR YOUR FARM:
You don’t just farm, you manage a large, complex business. You plant thousands of acres, harvest high volumes and utilize large-scale storage facilities. You operate on thin margins and tight deadlines while being responsible for making timely and accurate decisions across all aspects of your operation. At Lighthouse our professional merchandising service is designed with those demands in mind.
Professional merchandising means equipping your farm with the same merchandising tools and resources the rest of the grain industry utilizes. And it isn’t just the tools that make us unique. Our team brings decades of grain industry experience to work for you. You’re the CEO of your farm and Lighthouse’s professional merchandising service works for you, keeping you informed and allowing you to make timely marketing decisions through every season.
Successful marketing means doing three things really well:
First, knowing your cost of production, breakeven levels and profitability goals. Second, establishing a marketing plan and executing hedges to protect those goals. And third, merchandising cash grain correctly to maximize futures carry, basis appreciation and return on storage. Our service is designed to help you succeed at all three. We work with you to establish accurate cost of production and breakevens. From there we implement, continually monitor and execute a plan to hedge futures risk and protect margins. And finally we leverage our unparalleled regional market insight, cash grain relationships and logistics capacity to maximize carry and basis on each cash grain sale.
Through it all we stay incredibly motivated by the unique structure of our marketing agreements. Rather than a per bushel or per acre fee, our fee is tied to the price you receive for your grain. And we don’t get compensated until you do. We’re a 100% independent company that gets paid the same way you do; based on how much grain you produce, what you sell it for and when. This keeps our interests aligned at all times.
The Tools & Process:
RISK MANAGEMENT SOFTWARE: Lighthouse works with you to determine and input precise production cost and breakeven numbers for your farm. And as trades of any type (futures, options, OTC or cash) are executed, these are also inputted, giving you quick access and thorough understanding of your positions, hedge coverage and projected profitability.
FUTURES BROKERAGE: Our farm merchandisers are also introducing futures brokers through Lighthouse Hedging.
LINE OF CREDIT: Lighthouse Commodities has aligned with a large ag-focused bank to offer lines of credit that can be utilized for margin calls on hedging trades as part of our program.
ACCUMULATORS: Tools such as accumulators and other OTC (over-the-counter) contracts can be a useful addition to an overall hedging strategy as they provide unique pricing methods. Lighthouse offers a variety of these contracts as part of our service while still retaining the ability to market cash grain to best available market.
CASH SALES: Lighthouse Commodities is a licensed and bonded grain buyer with a $2 million grain bond in North Dakota. We issue payment weekly and pay by electronic funds transfer. We maintain a vast network of commercial grain and freight relationships across the U.S and Canada and leverage them daily to ensure each cash sale is to the most competitive market regardless of location.
MOBILE APP: Finally, our mobile app gives you immediate access to your grain accounting info - tickets/assemblies/contracts/settlements/etc.