Agricultural swap - Producer

Keep your profits sheltered from fluctuating grain prices

Control the sales price of your agricultural output and protect yourself against market price fluctuations

Are you an agricultural producer looking to reduce the impact of market fluctuations on your company's profitability? Adopt an efficient, flexible risk management strategy using agricultural swaps.

Efficiency

  • Protect your profit margins from major market fluctuations while preserving cash reserves
  • Improve your company's financial strength with better control over your revenues
  • Ensure you stay on schedule and on budget

Flexibility

  • Set the sale price for your harvest in advance
  • Select your hedging period
  • Establish specific monthly quantities based on your production schedule
  • Select a currency (USD or CAD)
  • Continue to sell your production to your usual clients

Simplicity

  • If the observed price on financial markets is lower than the set swap price, National Bank will pay you the difference on the agreed-upon volume
  • If the observed price on financial markets is higher than the swap price, you must pay the difference on the agreed-upon volume to National Bank
Keep your profits sheltered from fluctuating grain prices
*Executing a swap to hedge the risk of price fluctuations results in basis risk, as there are differences between financial market prices and the amounts paid by the purchasing company in its actual local market. This price disparity may be favourable or unfavourable for the business.

Our specialists are ready to meet with you and help you assess your risks and recommend a made-to-measure strategy.