Identity Preserved Contracts: Turning Grain Quality Into Premiums
Across the Canadian Prairies, most grain is marketed as a commodity, for a crop such as canola, it is priced off futures and basis. But some of the most consistent premiums available to farmers come from stepping outside the commodity system through identity preserved (IP) contracts.
IP contracts pay producers for delivering grain with specific, verifiable traits that are kept segregated from the general supply.
What Is an IP Contract?
An IP contract requires grain to meet defined specifications such as:
- Variety requirements
- Protein, oil, or quality thresholds
- Milling, malting, or food-grade standards
- Non-GMO or specialty traits
- Traceability or production practices
Because this grain cannot be easily replaced in the open market, buyers pay a premium for certainty.
Why IP Premiums Exist
IP premiums compensate buyers for reduced risk:
- Consistent quality
- Lower rejection and blending costs
- Reliable supply for end users
- Traceability for food and export markets
This is why IP premiums often hold up even when futures are weak.
Crops Where IP Strategies Work
- Hard red spring wheat
- Durum
- Malting barley
- Canola
- Pulses
- Oats
The common thread is measurable, repeatable quality.
How Farmers Use IP Contracts Effectively
- Choose varieties and agronomy that reliably hit specs
- Contract early, often pre-seed
- Understand tolerances and penalties
- Match contract volume to storage and logistics capacity
The Bottom Line
Identity preserved contracts aren’t about chasing price.
They’re about getting paid premiums for doing things right.
For disciplined producers, IP strategies convert grain quality and reliability into repeatable premiums. Reach out to one of Exceed’s grain marketing advisors and we can walk you through how farmers across Saskatchewan, Alberta and Manitoba are all reaping the benefits of Identity Preserved contracts.
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