Updated December, 2006
download in pdf format
 
teaching activity in Word-format
File A3-50





Don Hofstrand

Specialty Grain Terms

Don Hofstrand, extension value added agriculture specialist, co-director Ag Marketing Resource Center, 641-423-0844, dhof@iastate.edu



Act of God - Contract term whereby the grower is not obligated to deliver or pay for a shortage of contracted production in the event of poor yields due to weather or other uncontrollable factors.

Approved list - End-users’ list of preferred hybrids and/or varieties. Hybrids and varieties on approved lists have characteristics that best meet the specific needs of the end-use buyer. Today, many users of food grade corn and food grade soybeans have approved lists.

Composition-based grain marketing - The marketing of commodities based on the value of their various feed components, such as the starch and oil in corn. Traditional market grades or standards do not separately value the traits, and the issue of changing the way grains are priced and marketed has received considerable attention over the years.

End-user - Users of grain or grain products. Endusers can be broadly categorized as food companies, feed companies, livestock producers, and grain processors.

End-use tailored variety - Another way of describing identity preservation. Here, however, the focus is on the plant breeding or genetic engineering that brings added value through a particular crop trait. High-oil corn, with its higher value as an animal feed component, is an example of an enduse- tailored variety.

Grower contract - A contract between a grower and contractor for production of a specific type, quality, and amount of grain or other product. Most grower contracts are for a specified number of acres in which the contractor is obligated to purchase the entire production. Some grower contracts, however, are for a specified volume of grain.

Identity preserved (IP) grain - Grain (or oilseeds) segregated and handled separately from commodity grain. IP grain typically has characteristics that are desirable for specific end uses and needs to be segregated in order to preserve those traits and their value. To preserve a product’s unique traits or value, identity preservation demands significant steps during production, harvesting, storage and processing to segregate the crop from other varieties.

Multi media residue (MMR) screen - A series of chemical analyses made on grain or similar products to determine the presence of chemical residues.

Near infrared (NIR) spectrometry - An analytical method for rapid, non-destructive analysis of grain. Currently, NIR technologies are used for measuring content of protein, oil, starch, and moisture in grain. The technology will be used by researchers and handlers of grain.

Organic grain - Grain typically grown without the use of chemical pesticides and without the use of commercial fertilizers. Certification of organic grain varies by certifying agency and by state. Typically, three years without chemical pesticide and commercial fertilizer applications are needed for certification. Sourcing - Searching for and buying grain or grain products with specific traits that have been identity preserved.

Specialty-crop production - Generally refers to the production of untraditional varieties such as waxy corn, white corn, or food-grade soybeans; or it may refer to raising identity-preserved crops. In some cases, it refers to traditional grains that are marketed for untraditional or industrial uses. In any case, the attraction of specialty-grain production is the ability to enter a new or niche market that offers a price premium. Unlike identity preservation, specialty-grain production does not have to be based on unique plant genetics or production methods to result in the unique trait. Instead, entering the specialty- crop market may just depend on the producer’s ability to find a buyer who will pay a higher price to guarantee a supply for the alternative use. Grains sold for specialty purposes are sometimes referred to as product commodities, as opposed to the grain commodities sold in the traditional marketplace.

Value-added production - A general and comprehensive term that describes the production of commodities that sell for a price premium. The term can also refer to the marketing of traditional commodities that increases their value or the producer’s returns, such as food-grade soybeans or processing corn for ethanol.

Vegetable oil

Food grade corn

Food grade soybeans

Modified starch