About Alliance Advantage Program
If you’re a producer seeking to hedge your investment and diversify your risk in today’s market, consider Bunge’s Alliance Advantage Program. Whether you’re growing corn, milo, or soybeans, this alternative grain marketing program can add value to your crop while helping provide you with greater peace of mind through:
Strategic Risk Management
Market Objectivity & Expert Insight
The Alliance Advantage Portfolio Product
With a steadfast commitment to providing personalized grain marketing services, the Bunge team is evolving the Alliance Advantage Program to meet the needs of producers in a changing market environment. These improvements are designed to elevate the performance of producers seeking diversification and hedging opportunities as part of their grain marketing strategy.
Key Program Updates:
More Producer Control
This year, producers can price out during the pricing period vs. having to wait until the end of the pricing period.
New Cost Structure
Our fixed and variable fee structure offers a choice between standard and performance based cost structures.
www.bungeallianceadvantage.com provides greater visibility, charting, and reporting, so producers can see performance at any given time.
Building upon 200 years of risk management, the Bunge team utilizes depth of experience to deliver even more active management coverage.
How the Alliance Advantage Program Works
- Participation in the Alliance Advantage Program can total up to 25% of your expected production for the crop year in which the enrolled grain will be produced.
- Alliance Advantage experienced team of traders will manage the futures price component of your contract, using Bunge’s risk systems and market knowledge
- Weekly graphic AAP price performance updates, measured against respective futures market, are posted on the Alliance Advantage website for added transparency.
- Available contracts for corn, milo, soybeans
- Flexible pricing groups based on crop’s delivery month
- Program Weekly Exit Feature allows participants to take profits or change their risk profile as needed
- Cash Basis for this contract can be set on or before actual delivery of the enrolled grain.
- Fixed or Variable Cost Structure:
- The Fixed Fee will be equal to 9 cents per bushel.
- The Variable Fee will be no less than 3 cents per bushel. A performance incentive of 20% of the positive Net Trading Equity has a maximum fee of 20 cents per bushel.
- Early Price Out Fee: Upon early “price out” the fee will revert to the Fixed Fee.
- Minimum contract quantity 1,000 bushels per year
Who Are Good Candidates for the Alliance Advantage Program?
Corn, wheat, milo, or soybean producers who –
- want to hire experienced traders to actively mitigate price risk on a part of their production
- want to diversify how they sell their crops
- find grain marketing frustrating
- struggle with “pulling the trigger” and selling bushels
Alliance Advantage Program FAQs
A: Once the contract is final priced, with basis to be established on or before actual delivery of the enrolled grain, Bunge will settle with you after you meet the delivery obligation
A: Fees will be collected after the contract has been final priced and are withheld from final settlement.
A: The final price will apply to the cash contract in the name of the entity in which the producer contracted the grain, + or – basis and any applicable fees.
A: Producers may choose in advance any Bunge approved delivery point.
Have additional questions? Contact us or email us.
Explore our Complete Portfolio of Producer Services
The Alliance Advantage Program is just one tool in our service toolbox. Discover our other producer-focused service offerings or consult with Bunge on how we can customize services for your agribusiness.