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CFE Connection Program

Sep 30, 2020

About twelve months ago Cooperative Farmers Elevator began a program called the “CFE Connection program”.  This program looks back at historical pricing of fertilizer and compares it to either a current or future cash price of corn (ratio). A low ration equals a good opportunity to market corn or purchase your fertilizer input.

  • Today’s NC 2021 corn price at our Inwood location is $3.34 per bushel. (You can use any location you are close too).
  • UAN 32% nitrogen is 220.00 per ton for Spring of 2021.
  • If you take $220.00 per ton divided by the $3.34 per bushel, you get your ratio of 65.86 bushels per ton. If put into a ratio, it takes 65.86 bushels of corn to buy 1 ton of UAN 32%.
  • We track these ratios and at certain times the ratio is very good; one of those times is now. As you can see in the chart below, ratios can bounce from a low of 62.24 bpt all the way up to 93.91 bpt. As a grower you want to use as few bushels as possible to buy 1 ton of fertilizer.


How does this benefit you?

  • You can use your corn as collateral to purchase 2021 UAN. In this case, your spring 2021 UAN can be locked in simply by forward contracting NC 2021 corn at one of your locations.
  • You can use historical ratios to make decisions instead of price per bushel.

How do I take advantage of this opportunity?

  • Talk to one your CFE Agronomists or grain originators and they can help you sign the correct contracts and further explain the program.

****Other grain contracts may qualify for the Connection program. Please contact your grain originator for more details.

****All CFE Contracts are subject to approval and may require proof of insurance and bank subordination.


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