Commodity Swaps for Buyers

Like any other financial market, the farm commodities market can be volatile, resulting in unstable prices for grain and other agricultural products. Our swap for buyers allows you to lock in a portion of the price¹ you pay for farm inputs, reducing the impact on your cash flow. Contact your Account Manager

Email us

Already a client?
Contact your Account Manager

Contact our Risk Management Solutions team at 514-394-4556 or at 1-844-394-4556 (toll-free) from 8 am to 5 pm (ET)

Buy farm inputs at a fixed price

Locking in prices with the swap for buyers allows you to:

Secure your costs by locking in a portion of the purchase price when the market price is favourable
Manage your cash flow more effectively with predetermined payments
Focus on production

The swap for buyers in four steps

Decide on the transaction amount and time period.

Negotiate a fixed price (swap price) with National Bank.²

Purchase your physical farm inputs from the supplier of your choice (merchant, distributor or producer) at the price available at the time of sale.³

At the end of the term, settle up any difference between the market price and the swap price.

Two possible scenarios

The market price is higher than the swap price

National Bank will pay you the difference between the swap price and the market price for the value of the contract.

The market price is lower than the swap price

You will pay National Bank the difference between the swap price and the market price for the quantity negotiated for the swap.

Features of National Bank's swap for buyers

Price can be locked in up to 18 months in advance
Flexible reference dates (monthly or weekly average, set date, etc.)
Access to a range of agricultural price indices including corn, soy, wheat and pork
Generally, no upfront payments (margin calls) or refunds are required during the contract period
Has less impact on your cash flow than a futures contract
Currency risk is reduced with swaps available in both U.S. and Canadian dollars

Eligibility criteria

Purchase at least 2,000 tonnes of grain or equivalent per year
Have set up a credit facility and obtained the legal documents required by National Bank
Undergo a complete risk assessment by our specialists to establish the suitability of the product