Managing Extra Bushels Post-Harvest: Consider an MPC Contract

With rising interest rates, storage expenses, and market volatility, it’s essential to have a strategy. One increasingly popular tool among Kansas growers is the Minimum Price Contract (MPC). 

What Is an MPC Contract? 

An MPC contract allows you to: 

• Set a floor price for your grain  

• Stop storage costs 

• Get paid upfront, helping reduce or eliminate interest at the bank 

• Retain upside potential if the market improves 

In short, it provides a middle ground, allowing you to lock in a base price while still participating in potential market rallies. 

Why It Works 

When you factor in the cost of ownership (including interest, storage, shrinkage, and risk), holding grain can become expensive. An MPC contract helps you manage that risk while keeping some skin in the game. 

Talk to your Producer Ag Grain Marketing Specialist to see if an MPC contract fits your marketing plan and helps you maximize profitability this season. 

Artical provided by, Todd Schultz, Grain Marketing Manager