Jul 12, 2022

UGC Offers Drought Protection Contract to Producers

Producers who lose their entire crop yield to drought can be released from obligations to deliver grain

About 80% of Montana is in a severe or extreme drought and its continuation could make 2022 the state’s second consecutive year of reduced grain production.

Amid these conditions, United Grain Corp. (UGC) is offering its producers its new Profit Partner Protection Plus contract, an agreement where producers who lose their entire crop yield to drought can be released from obligations to deliver grain.

“Our efforts to bring high-quality grains to overseas customers depend on the products of our producers, and their cultivating relies on ideal growing conditions,” said UGC Hedge Desk Manager Rob Froom.

“This year’s drought has made growing difficult for many of our producers, so we are pleased to offer them a contract that will reduce pressure if it prevents them from producing anything.”

Producers impacted deeply by western drought

UGC feeds the world by connecting producers in the northern U.S. with global buyers in the Asia-Pacific region, but last year saw some of UGC’s producers in eastern Montana, North Dakota and Minnesota unable to deliver any grain due to drought.

To provide security for its producers should they experience this in the future, UGC formulated the Profit Partner Protection Plus contract.

This agreement provides producers with a less risky contract through which they can set a price floor in the futures market and not have to worry about Mother Nature cooperating.

In the event of a crop failure, producers could potentially be out the cost of their price floor but the obligation to deliver their contracted grain is canceled.

Contract protects against other natural events

In addition to drought, UGC’s Profit Partner Protection Plus contract also applies if entire crop yields are destroyed by natural events from hailstorms to insect infestations.

“UGC is dedicated to feeding the world safely and we recognize the challenges that our producers go through to help us achieve that goal,” said Froom.

“With our Profit Partner Protection Plus contract, producers can make it through this difficult growing period without worrying about delivering should they lose all their crops.”

Feed & Grain Staff

Recently Added to Buyer's Guide

Ribbon Blenders

  • 5-cubic-foot unit features special three-piece grate designed with angled and pitched profile
  • All three sections of the grating have position sensors which interlock with the control panel, ensuring operator safety while running

Infinifeed Loop

  • Continuous feed loop system
  • Capacities available up to 1,800 bushels/hour

Loop Conveyor System

  • Can be used to fill and empty grain bins and flat storage structures or applied to feed processing and other conveying applications
  • Available in 8-, 10- and 12-inch diameters with capacities up to 10,000 bushels/hour


  • 5-minute ELISA testing kit
  • Use a common extraction protocol for ease of use

Q-Sage Air Screen Cleaners

  • Separates grain by length and size to specifications
  • Numerous flow patterns available to accommodate each unique product and processing need

Vertical Blender

  • For reliable, gentle mixing of friable solids, abrasive materials and shear-sensitive products
  • For processing large volumes where floor space is limited


Marketwatch: Aug, 18

US Corn Price Idx: ZCPAUS.CM

open: 6.6945
high: 6.737
low: 6.6326
close: 6.6866

US Soybean Price Idx: ZSPAUS.CM

open: 14.3219
high: 14.4169
low: 14.2107
close: 14.3029

US Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.3035
high: 8.351
low: 7.9626
close: 8.0508

US Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.3573
high: 7.4048
low: 7.0429
close: 7.0505