VANCOUVER, WA (June 2022) About 80 percent of Montana is in a severe or extreme drought, and its continuation could make 2022 the state’s second consecutive year of reduced grain production. Amid these conditions, leading grain exporter United Grain Corporation (UGC) is offering its producers its new Profit Partner Protection Plus contract, an agreement where producers who lose their entire crop yield to drought can be released from obligations to deliver grain.
“Our efforts to bring high-quality grains to overseas customers depend on the products of our producers, and their cultivating relies on ideal growing conditions,” said UGC Hedge Desk Manager, Rob Froom. “This year’s drought has made growing difficult for many of our producers, so we are pleased to offer them a contract that will reduce pressure if it prevents them from producing anything.”
UGC feeds the world by connecting producers in the northern United States with global buyers in the Asia-Pacific region, but last year saw some of UGC’s producers in eastern Montana, North Dakota, and Minnesota unable to deliver any grain due to drought. To provide security for its producers should they experience this in the future, UGC formulated the Profit Partner Protection Plus contract. This agreement provides producers with a less risky contract through which they can set a price floor in the futures market and not have to worry about Mother Nature cooperating. In the event of a crop failure, producers could potentially be out the cost of their price floor but the obligation to deliver their contracted grain is canceled.
In addition to drought, UGC’s Profit Partner Protection Plus contract also applies if entire crop yields are destroyed by natural events from hailstorms to insect infestations.
“UGC is dedicated to feeding the world safely and we recognize the challenges that our producers go through to help us achieve that goal,” said Froom. “With our Profit Partner Protection Plus contract, producers can make it through this difficult growing period without worrying about delivering should they lose all their crops.”
For more information, please contact Josh Grega at email@example.com or (206) 291-4709.
ABOUT UNITED GRAIN CORP.
For more than 50 years, United Grain Corp. (UGC) has been the Pacific Northwest’s premier bulk grain export company. UGC delivers high quality products, including wheat, feed grains and oilseeds to global customers – backed by superior service from its headquarters in Vancouver, Washington. UGC’s Vancouver Export Terminal (VET) boasts the largest storage capacity on the U.S. West Coast at 220,000 metric tons (8 million bushels) with an annual handling capacity of 5 million tons. With locations across Washington, Oregon, Montana, and the Dakotas, UGC has forged strong relationships throughout the decades. UGC’s partnerships and experience help ensure that it not only continues to provide unwavering support to its customers but also provides a lifeline that helps feed the world. For more information, visit https://ugcpnw.com.