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Diffrent Ways Grain Is Booked
Trucking can work in many ways, buyers may have their trucks or ask Market Master to arrange freight. Often, the producer may prefer to haul his own grain to the end destination. Examples, a producer is quoted a barley price of $3.80/bu “at the bin." “At the bin” is also referred to as “FOB farm.” The quote reflects the grain price AFTER any freight costs and less brokerage fees. After producer receives cheque from Buyer, seller pays brokerage of $0.06/bu to Market Master.
BUYER ARRANGES TRUCKS (FOB)
Buyer has his own trucks or preferred carrier and pays the freight bill. Sends cheque, less any freight costs, to Producer:

Broker’s Note says:
$205.00 buyer’s gross price
$ 27.50 buyer’s freight cost
$177.50 or $3.86/bu

Broker’s Note says:
$177.50 buyer’s gross price
- $ 0.00 buyer’s freight cost
$177.50 or $3.86/bu

In both cases buyer picks up the grain and then issues the cheque to producer: $177.50/MT, producer pays brokerage of $0.06/bu to Market Master.

$177.50 buyer’s gross price
- $ 0.00 buyer’s freight cost
$177.50 or $3.86/bu
- $0.06/bu
$3.80/bu in your pocket
PRODUCER HAULS OWN GRAIN
Buyer allows producers to haul directly to location and issues ENTIRE cheque to Producer.

Broker’s Note says:
$205.00 buyer’s gross price
- $ 0.00 freight cost
$205.00 or $4.46/bu

Buyer issues ENTIRE cheque to producer of $205.00/MT or $4.46/bu.

After producer hauls his own grain and receives cheque from buyer, pays brokerage of $0.06/bu to Market Master.

$205.00/MT
- $ 0.00/MT
$205.00/MT or $4.46/bu
- $ 0.06/bu
$ 4.40/bu delivered
WE ARRANGE TRUCKS (At The Bin)
Buyer does not have trucks and prefers freight to be arranged. Buyer sends ENTIRE cheque to Producer:

Broker’s Note says:
$205.00 buyer’s gross price
- $ 27.50 trucker’s freight cost
$177.50 or $3.86/bu

Buyer issues ENTIRE cheque to producer: $205.00/MT or $4.46/bu.

After producer receives cheque from buyer, producer pays freight invoice of $27.50/MT to grain hauler and brokerage of $0.06/bu to Market Master.

$205.00/MT
- $ 27.50/MT
$177.50/MT or $3.86/bu
- $0.06/bu
$3.80/bu in your pocket
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