GROUP AVERAGE PRICE PROGRAM (GAPP)

GAPP is a program offered by FS GRAIN where enrolled bushels are grouped with other producers’ bushels and priced evenly at the close of every trading day within the program pricing period. At the end of the program, you receive an average price. 

This program offers an old crop corn option, in addition to new crop options for both corn and soybeans. Additional options include cash, picked-up and HTA (fees apply). Old crop corn trades off the July while new crop trades off the November or December futures.

Advantages:

+ Program is based off of 15 year seasonal futures price charts where the program period is adjusted each year to capture the historical higher price time range.

+ No charge to enroll bushels.

+ Various contract options.

+ Free for Fall delivery.

Risks:

• The farmer receives an average price at the end of the program that may differ from current prices that may be higher.
• The average price of the contract moves less towards the end of the program. However, this is a good thing if prices begin to move lower.