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Paintearth council welcomes delegation from Producer Profit

Delegation discussed grain marketing
County of Paintearth. (File photo)

Paintearth County welcomed Kyle Sinclair from Producer Profit, an independent grain marketing organization, to its May 7 meeting. 

Sinclair was attending the meeting to let council know what it was that the organization did and what it could do for farmers in the region.

"We help with marketing decisions on the grain side," said Sinclair, in his opening remarks.

"Farms focus quite a bit on production ... (we help) focus on profitability."

Sinclair noted that one of the first questions he usually asks farm operators is their cost of production, and it's not something they have "a really detailed answer for."

"It tends to be more of a guess than an exact answer," said Sinclair.

Production costs could be calculated per acre or per bushel, but without an accurate number Sinclair says that farms could be operating "below their break-even point."

Sinclair says that the organization works with farmers on crop plans and seeding plans with an eye toward growing crops that lead to a farm's sustainability. 

An area Sinclair spent significant time discussing was producers who needed to sell their grain due to a need for cash.

It was noted that the need for a sale, and selling when the market is not exactly prime, makes it "a buyer's market."

"When you're between a rock and a hard place, it's harder to get top dollar for what you are selling," said Sinclair.

"We help get (them) get to a spot where the farm can choose when to sell their grain, not (sell) because they have to."

Sinclair noted that each farm has different "nuances," due to the different risks, road bans, taxes, etc. that each one deals with depending on where they are located. 

An operator's risk tolerance varies, but the various marketing strategies employed by Producer Profit can help mitigate that risk.

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Following Sinclair's presentation, council asked a few questions and then accepted it as information in a motion by Coun. Diane Elliot.


Kevin Sabo

About the Author: Kevin Sabo

I’m Kevin Sabo. I’ve been a resident of the Castor area for the last 12 years and counting, first coming out here in my previous career as an EMT.
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