A Disciplined Approach to Grain Marketing: Hertz’s Strategy for Stable Returns

Hertz Farm Management’s grain marketing philosophy emphasizes stability, discipline, and risk management through structured, research-based decision-making. Rather than speculating or reacting emotionally to market swings, Hertz employs a systematic approach guided by historical price patterns and market fundamentals. Our marketing committee meets regularly to evaluate local and global weather, USDA reports, input costs, export trends, and other fundamental and technical factors influencing grain prices.

Our philosophy recognizes that corn and soybean prices typically experience seasonal rallies at specific times throughout the year, and these rallies are viewed as prime opportunities to make incremental sales. This strategy focuses on capturing profitable price levels while avoiding the risks associated with waiting for market peaks that may never materialize. By focusing on consistent execution—“hitting singles and doubles” rather than seeking “home runs”—Hertz helps clients maintain steady revenue streams and long-term financial stability.

Structured, Disciplined Decision-Making

The marketing committee’s objectives help take the emotion out of marketing decisions by setting clear price and time targets. These guidelines recommend that managers typically sell 30–50% of new-crop grain during the spring and early summer rally window, with around 25–33% marketed by planting and 40–50% by pollination. The remaining bushels are generally sold as old crop in the following marketing year.

This disciplined timeline ensures that decisions are proactive and not reactive to short-term market noise. By making sales in smaller increments of roughly 10–15% per trigger point, managers can take advantage of favorable opportunities without overcommitting. This structure provides predictability and reassurance for participating landowners, reinforcing Hertz’s commitment to consistent, prudent management rather than speculative behavior.

Integration with Farm Financial Planning

A central tenet of Hertz’s philosophy is that marketing must integrate seamlessly with overall farm financial planning. Decisions about when and how to sell grain take into account storage capacity, cash flow needs, and each farm’s budget. Accurate yield and inventory tracking—using grain bin measurements, settlement sheets, and yield monitor data—ensures that marketing decisions are grounded in reliable production estimates.

Maintaining conservative estimates helps avoid contract shortfalls. Just as importantly, the company recognizes the psychological side of marketing. Managers are trained to resist the “emotional roller coaster” that can come with volatile commodity prices, focusing instead on the farm’s profitability and long-term goals.

Marketing Tools and Risk Management

Hertz also uses a variety of marketing tools—such as hedge-to-arrive, basis, forward contracts, and options—to manage price risk and capture favorable market opportunities. Each tool serves a specific function in balancing price flexibility with protection from adverse market moves. Our approach combines both fundamental and technical analysis, examining chart patterns, support and resistance levels, retracements, and moving averages to refine entry and exit points. This blend of market science and discipline creates a marketing environment that is both proactive and data-driven.

Crop Insurance as a Strategic Partner

Revenue Protection (RP) crop insurance plays a vital complementary role in Hertz’s overall marketing and risk management framework. By guaranteeing a percentage of expected yield and price—typically 75% or higher—RP coverage helps secure a minimum revenue floor for producer clients. This insurance not only protects against yield losses from adverse weather but also guards against price declines between planting and harvest.

Because the policy is tied to futures market prices, it provides flexibility for producers to make forward sales with confidence, knowing that the insured revenue level helps buffer against unexpected losses. Hertz integrates RP insurance directly into marketing strategies, allowing managers to market grain more aggressively when protection is in place. For example, if a producer locks in 80% coverage on both yield and price, the insured revenue ensures that a significant portion of income is protected even if market prices fall or yields suffer from drought, flooding, or other perils.

Turning Uncertainty into Strategy

This integration of marketing and insurance gives Hertz’s participating clients a comprehensive risk management plan—balancing opportunity with protection. With a strong safety net provided by crop insurance, farm managers can make more disciplined and timely marketing decisions without the fear of catastrophic loss.

The result is a consistent, professional approach to grain marketing that reduces volatility, protects profitability, and aligns with the long-term financial objectives our clients may have. In essence, Hertz Farm Management’s philosophy is about managing risk, not chasing markets—turning uncertainty into a structured plan for financial stability and sustained success.