What is the Merchants Plus Grain Program (MPGP) and why should I use it as a business strategy?
Merchants Plus helps independent elevators originate more bushels, sooner, by offering a valuable producer pricing program to farmers. Farmers can commit production to the elevator and the futures portion of their risk will be priced by a professional pricing team drawing on years of experience and sophisticated trade execution capabilities. The program takes the uncertainty and worry out of pricing a portion of your crop and allows you to participate in OTC and option strategies.
Are my competitors using programs similar to the MPGP?
Most of the major grain traders now offer similar programs, typically through cash contracts that require delivery to their own elevators. The FCStone Merchant Services (FMS) program allows independent elevators to compete and originate bushels that they would otherwise lose and allows farmers to diversify their pricing and counterparty risk.
Is the MPGP difficult or time consuming to manage?
No, farmers can contract to deliver grain with the elevator as usual. Simply notify the elevator within the signup window that you would like to participate or according to whatever processes the elevator has arranged. The elevator will notify FMS of the total volumes and FMS will go to work pricing. Regular updates will be available but nothing else is required until the program is completed and you receive your final futures price.
Why should I work with FCStone Merchant Services, LLC (FMS)?
FMS is an established Agribusiness service provider and part of an INTL FCStone Inc. family of businesses with decades of experience in the Ags sector from freight to futures brokerage to OTC markets. We pride ourselves in knowing our customers’ business and sitting with them on the same side of the table as we help manage price, volatility, and liquidity risk. FCStone was the first non-bank swap dealer and has vast knowledge of the global OTC and options space. We have a proven track record of expert execution and insightful analysis—and have earned a reputation as a trusted and transparent partner. Dealing with the FCStone name provides the confidence that you are dealing with a stable industry leader and Fortune 500 company.