A lack of acknowledgement of the nature of agricultural markets leads many of those in the market to throw themselves at the mercy of it. Many marketing and pricing decisions are made on non-economic factors, or behavior is embodied in decisions not to decide. Farm producers tend to be particularly susceptible to the vagaries of agricultural markets. The rule of thumb among those involved in agricultural marketing is that two thirds of grain producers market their crops in the bottom one third of market prices. For a corn producer, for example, this means that at least $0.15 to $0.30 per bushel is "left on the table."

Risk management, the foundation of effective marketing, isn't about controlling uncertainty. It is about managing it. Perhaps most importantly, it's about managing the emotions that influence and shape decisions. At its simplest level, Decision Contracts enable customers to participate in the market every day. It removes emotion and automates the decision-making process that can hinder effective grain marketing.

Decision Contracts are analogous to an index fund. Users select a Decision Contract according to their risk profile and operational needs, which then times selling decisions based upon overall grain market price movements and trends. Studies show that the Decision Contracts, with its disciplined approach to selling, will outperform other techniques, including most market advisory services. Decision Contracts, in the grain market, takes the guesswork and emotion out of pricing grain for producers and enables them to select a pricing strategy appropriate for them.

Decision Contracts have proven to be a valuable risk management tool for grain producers. For example, since 2000 farmers using Decision Contracts have averaged a $0.15 to $0.35 per bushel advantage using Decision Contracts over what they would have received by accepting cash corn price on delivery.

Decision Commodities and the Iowa Farm Bureau Federation have partnered since 2002 to bring an innovative risk management solution to farm producers in Iowa. This partnership has leveraged the marketing and education resources of Farm Bureau and the field presence of Decision Commodities.

Decision Commodities and GROWMARK created a partnership in 2004.  GROWMARK and Decision Commodities formed an alliance to deliver and develop grain risk management products and services. The working relationship is designed to enhance marketing of Decision Contracts among GROWMARK member cooperatives and to develop new products and services that support the ability of cooperatives to successfully offer new generation grain contracts.