GeoGrain was established in 1999 by company President Kevin McNew when he recognized the potential for precision-based farming decisions through the use of internet tools and applications. Motivated by the drastic changes to the country’s grain flow created by the arrival of bio-based energy, McNew developed a system for collecting grain market data.
“Volatility leads to opportunity” says McNew from the company’s headquarters in Bozeman, Montana. “We knew basis levels would be much more volatile in the years to come, and that everyone in the grain marketing channel would need better intelligence to help manage that risk.”
McNew then turned beyond data collection to focus his team on developing a way for cash grain traders to know where their best local buying or selling opportunities were. “It’s one thing to give someone a table of prices. It’s another to give them a precise answer that helps them make more money.” Every day our team of cash market specialists collects over 48,000 prices from around the country. This data, utilized by our GeoGrain Optimization tools, gives our users a precise answer to which buying or selling location generates the largest net return, after taking into account trucking and storage costs. On average, our tools help producers find an extra 10 to 20 cents a bushel beyond what they would have received by simply going to their local elevator. Those extra cents make significant contributions to a farmer’s bottom line. “If you consider a 2,000 acre grain farmer, capturing an extra 10 cents on his crop can add $20,000 to his crop value.” Furthermore, McNew and his team of analysts found that market dynamics change readily and that regional opportunities vary widely over the course of the marketing season. Some of our market research has uncovered that a Midwest grain producer typically has six to seven optimal markets and that it is possible for a producer to have up to twelve locations that qualify for “best selling opportunities” during the marketing season. “What that means is a producer needs to constantly monitor numerous local markets to capture the most value,” states McNew. “Fortunately, we take the time and the guess work out of it by giving farmers that precise answer every day.”
Today, GeoGrain offers its Optimizer technology along with other advanced tools to both farmers and corporate clients. Agribusinesses such as banks, farm management companies, brokers, and crop insurance companies utilize GeoGrain data and solutions to differentiate themselves among competitive service industries. These corporate clients use our technology to increase their client’s profitability and strengthen client-business relationships.
Whether your desire is to make improved business decisions, boost profitability, or to build client relationships, GeoGrain has data and solutions that can help you meet your goals.