For Don Hoeksema, managing a successful corn and soybean operation in Platte, South Dakota, harvesting the crop is only half the job. Decades ago, an FSA officer gave Don a piece of advice that stuck with him: getting the crop out of the field is the easy part — the real challenge is knowing how to market it. Operating a multi-generational family farm on a mix of owned and rented land, Don knows firsthand that while the pressure to maximize grain value is constant, a single mistimed sale can derail a season’s margins.
In an era of high expenses and tight commodity prices, Don found that traditional 12-month bank notes actively stand in the way of a good marketing strategy by forcing sales around a calendar deadline rather than a market opportunity.
Moving beyond traditional real estate lending
Traditional lenders often prioritize land equity, which can leave a gap for growers who are focused on expanding their operational footprint. Don noticed that even with significant equity, traditional banks often have rigid rules that don’t account for a grower’s actual performance or cash flow needs.
“FarmOp looks at your performance and works through the numbers to find a solution,” Don explained. “The traditional bank has a whole different set of rules; even if you have millions in equity, if things are tight, they look at it and say they don’t want any part of you.”
By contrast, FarmOp Capital offered a different approach by basing the operating loan on Don’s proven track record and crop insurance coverage. This production-based model provided the capital needed for input costs while allowing Don to focus on the potential of his crop rather than just the deed to his land.
Using professional support to navigate grain marketing risk
Because this financial structure tied his operating line directly to his projected yield, it opened a natural pathway for Don to optimize his sales strategy. He became the first client to join the FarmOp Commodities program, seeking a partner who could help navigate the dynamics of grain marketing. Working closely with Kim Rugel on the FarmOp Commodities team, Don found a reliable sounding board to confirm his ideas and execute new marketing strategies.
“Kim has everything in front of her, including my loan balances and crop insurance,” Don said. “She knows where we have to be. Last year, she handled a lot of the technical side of my marketing. It has taken a massive amount of stress off what I have to do throughout the day.”
This partnership allowed Don to leverage options and try different cash contracts to improve his final price, knowing he had an expert to help him navigate the risk. However, executing these advanced strategies requires time — something traditional financing rarely accommodates.
Improving grain marketing basis with 18-month loan terms
In South Dakota, where unpredictable weather can cause a 100-bushel swing in corn yields from year to year, having a rigid timeline only compounds a grower’s risk. FarmOp’s flexible 18- to 24-month loan terms give Don the breathing room to handle this volatility. Instead of selling in December to satisfy a bank deadline, Don can store his grain and wait for a stronger basis.
With extended terms up to 24 months, each line of credit remains tied to its individual crop year. This structure allows loans to overlap, giving farmers the ability to finance the next crop year while the current year’s loan is still active. For growing operations, this means fewer cash-flow gaps, more consistent access to working capital, and greater flexibility through the grain marketing window.
“We aren’t forced to sell just because a calendar date says a note is due,” Don explained.
“With my 18-month marketing plan, Kim and I can talk about what makes sense for the operation. Last year, storing our beans in the bins really paid out because we had the time to wait for a better price.”
Gaining a neutral partner for your grain marketing plan
Executing those long-term storage strategies successfully comes down to confidence. For Don, the relationship with FarmOp is about more than just numbers; it is about having a dedicated team that works with him to evaluate the market without outside pressure. The ability to bounce ideas off a neutral party who understands the broader market landscape has turned grain marketing from a stressful chore into a part of the business that he now genuinely enjoys.
“It is a relief to have someone to talk to who is focused solely on what is best for my operation,” Don explained. “You have a partner you can talk to candidly. It has been a good fit because they have everything laid out in front of them and they know where we are at all the time.”
Executing a smarter grain marketing plan with FarmOp Capital
This level of partnership is exactly why FarmOp Capital structures its lending differently. By looking at the whole operation rather than just land equity, FarmOp Capital helps growers build a roadmap for long-term success.
Ready to turn your financing into a tool for grain marketing success?
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