Freedom® Pricing Tools

The Freedom Pricing Tools from The Andersons are a full line of programs designed to complement and diversify your risk management plan. Flexible in their design, the Freedom Pricing Tools give you the freedom to create a strategy to fit your personal grain marketing plan. These easy-to-use, professionally executed programs eliminate brokerage accounts and margin calls. You can choose from several programs, each with its own unique benefits, offering a managed, technical, or structured approach that are optimized under a variety of market conditions.

Flexibility and choice is why we believe the Freedom Pricing Tools should be a part of every farmer’s marketing portfolio.

  Watch these short, informative videos for an overview of our pricing program.
 
 
  • Freedom Trader
  • Freedom Bin
  • Freedom X-TRA
  • Freedom Max
  • Velocity Pro
  • Market Pros
  • Freedom Tech
  • Min/Max Avg
  • Min Price
  • Daily Avg
  • Premium Plus
Freedom Trader

The Andersons Freedom Trader

Our leading one-year program, Freedom® Trader℠, is designed to provide downside protection for bushels that need to be moved at harvest. To customize your risk management strategy, choose the Freedom® Trader℠ pricing window that fits your goals and your operation.

Goal:

To Strategically manage downside risk through market awareness, strategy selection, and position management.

Benefits:

  • Downside protection
  • Market knowledge and expertise of the Freedom Pricing Team
  • Provides a futures price

Option 1: Enrollment Window Closed

Enrollment Deadline: Aug. 31, 2017
Pricing Window: Sept. 1, 2017 through Sept. 19, 2018
Futures Reference: CZ18
Price Adjustment:

  • Freedom Trader Base†: $0.08 per bushel
  • Freedom Trader Prime: $0.10 per bushel

Performance Adjustment*:

  • Top 33%: $0.02 per bushel
  • Top 10%: $0.02 per bushel

Price Balance Option: Included with the Freedom Trader Prime price adjustment for no additional charge; available for an additional $0.04 per bushel with the Freedom Trader Base price adjustment.  
Program Attribute: Downside Protection

 

Option 2: Enrollment Deadline Soon

Enrollment Deadline: Dec. 19, 2017
Pricing Window: Dec. 20, 2017 through Sept. 19, 2018
Futures Reference: CZ18 and SX18
Price Adjustment:

  • Freedom Trader Base†: $0.06 per bushel
  • Freedom Trader Prime: $0.08 per bushel

Performance Adjustment*:

  • CZ18 Top 33%: $0.02 per bushel
  • CZ18 Top 10%: $0.02 per bushel
  • SX18 Top 33%: $0.03 per bushel
  • SX18 Top 10%: $0.03 per bushel

Price Balance Option: Included with the Freedom Trader Prime price adjustment for no additional charge; available for an additional $0.04 per bushel with the Freedom Trader Base price adjustment.
Program Attribute: Downside Protection

 

Option 3: Enrollment Deadline Soon

Enrollment Deadline: Nov. 29, 2017
Pricing Window: Nov. 30, 2017 through July 31, 2018
Futures Reference: CU18
Price Adjustment:

  • Freedom Trader Base†: $0.06 per bushel
  • Freedom Trader Prime: $0.08 per bushel

Performance Adjustment*:

  • Top 33%: $0.02 per bushel
  • Top 10%: $0.02 per bushel

Price Balance Option: Included with the Freedom Trader Prime price adjustment for no additional charge; available for an additional $0.04 per bushel with the Freedom Trader Base price adjustment.
Program Attribute: Downside Protection



All bushels are guaranteed to price. Basis may be attached at any time during the pricing period. Standard HTA policies and fees may apply.

Price Balance Option (PBO) is available for an additional $0.04 per bushel.
*A performance adjustment will be made if the final price is in the top 33% of the pricing window. A second adjustment will be made if the final price is in the top 10% of the pricing window.

Freedom Bin

The Andersons Freedom Bin

Our Freedom® Bin℠ program is specifically designed for the pricing of stored bushels to leverage your on-farm storage in your risk management plan.

Goal:

To Strategically manage downside risk through market awareness, strategy selection, and position management.

Freedom Bin is part of the Freedom Trader Suite of programs.

Benefits:

  • Downside protection
  • Market knowledge and expertise of the Freedom Pricing Team
  • Provides a futures price

Enrollment Deadline Soon: Dec. 19, 2017
Pricing Window: Dec. 20, 2017 through Feb. 13, 2019
Futures Reference: CH19
Price Adjustment:

  • Freedom Bin Base†: $0.08 per bushel
  • Freedom Bin Prime: $0.10 per bushel

Performance Adjustment*:

  • Top 33%: $0.02 per bushel
  • Top 10%: $0.02 per bushel

Price Balance Option: Included with the Freedom Trader Prime price adjustment for no additional charge; available for an additional $0.04 per bushel with the Freedom Trader Base price adjustment.
Program Attribute: Downside Protection



All bushels are guaranteed to price. Basis may be attached at any time during the pricing period. Standard HTA policies and fees may apply.

Price Balance Option (PBO) is available for an additional $0.04 per bushel.
*A performance adjustment will be made if the final price is in the top 33% of the pricing window. A second adjustment will be made if the final price is in the top 10% of the pricing window.

Freedom X-TRA

The Andersons Freedom X-Tra

Freedom X-Tra℠ has an extended, two-year pricing window to leverage market fluctuations and volatility over two growing seasons to better capture pricing opportunities.

Goal:

Our Freedom® X-Tra℠ program has an extended, two-year pricing window to leverage market fluctuations and volatility over two growing seasons to better capture pricing opportunities.

Benefits:

  • Downside protection
  • Market knowledge and expertise of the Freedom Pricing Team
  • Provides a futures price

Enrollment Deadline Soon: Dec. 19, 2017
Pricing Window: Dec. 20, 2017 through Oct. 1, 2019
Futures Reference: CZ19 and SX19
Price Adjustment:

  • Freedom X-Tra Base†: $0.08 per bushel
  • Freedom X-Tra Prime: $0.10 per bushel

Performance Adjustment*:

  • CZ19 Top 33%: $0.02 per bushel
  • CZ19 Top 10%: $0.02 per bushel
  • SX19 Top 33%: $0.03 per bushel
  • SX19 Top 10%: $0.03 per bushel

Price Balance Option: Included with the Freedom Trader Prime price adjustment for no additional charge; available for an additional $0.04 per bushel with the Freedom Trader Base price adjustment.
Program Attribute: Downside Protection



All bushels are guaranteed to price. Basis may be attached at any time during the pricing period. Standard HTA policies and fees may apply.

Price Balance Option (PBO) is available for an additional $0.04 per bushel.
*A performance adjustment will be made if the final price is in the top 33% of the pricing window. A second adjustment will be made if the final price is in the top 10% of the pricing window.

Freedom Max

The Andersons Freedom Max

Our Freedom® Max℠ program utilizes strategies to maximize hedge price in environments that either grind higher or experience big rallies, and preserve some downside risk in range bound and grind lower markets. Like the other Managed Pricing Tools, the Freedom® Max℠ program integrates the same discipline, professional management, and risk management philosophies that form the foundation of the Freedom® Pricing Tools.

Goal:

To Strategically manage the hedge position focusing on upside participation through market awareness, strategy selection, and position management.

Benefits:

  • Upside participation
  • Market knowledge and expertise of the Freedom Pricing Team
  • Provides a futures price

Enrollment Deadline: Feb. 28, 2018
Pricing Window: Mar. 1, 2018 through Aug. 31, 2018
Futures Reference: CZ18 and SX18
Price Adjustment:

  • Freedom Max Base†: $0.06 per bushel
  • Freedom Max Prime: $0.08 per bushel

Performance Adjustment*:

  • CZ18 Top 33%: $0.02 per bushel
  • CZ18 Top 10%: $0.02 per bushel
  • SX18 Top 33%: $0.03 per bushel
  • SX18 Top 10%: $0.03 per bushel

Price Balance Option: Included with the Freedom Trader Prime price adjustment for no additional charge; available for an additional $0.04 per bushel with the Freedom Trader Base price adjustment.
Program Attribute: Upside Participation



All bushels are guaranteed to price. Basis may be attached at any time during the pricing period. Standard HTA policies and fees may apply.

Price Balance Option (PBO) is available for an additional $0.04 per bushel.
*A performance adjustment will be made if the final price is in the top 33% of the pricing window. A second adjustment will be made if the final price is in the top 10% of the pricing window.

Velocity Pro

The Andersons Velocity Pro

Our Velocity Pro℠ program uses an assertive trading style in dynamic market movements to capitalize on short term market fluctuations. This program is designed for the producer who is willing to accept the highest amount of risk in exchange for the highest return potential, and complements the downside protection of a robust crop insurance policy and the Freedom® Trader℠ Suite of programs.

Enrollment Window Closed: Oct. 17, 2017
Pricing Window: Oct. 18, 2017 through Oct. 17, 2018
Futures Reference: CZ18
Price Adjustment:

  • Velocity Pro Base: $0.12 per bushel
  • Velocity Pro Prime: N/A

Performance Adjustment:

  • Top 25%**: $0.03 per bushel

Price Balance Option: Not available on this program.
Program Attribute: Aggressively Traded



All bushels are guaranteed to price. Basis may be attached at any time during the pricing period. Standard HTA policies and fees may apply.

**A performance adjustment will be made if the final price is in the top 25% of the pricing window.

Market Pros

The Andersons Market Pros

The Market Pros® program offers years of proven performance. A third-party team of risk management professionals manages pricing decisions.

Benefits:

  • Added pricing diversification
  • Provides a futures price

Enrollment Deadline Soon: Dec. 19, 2017
Pricing Window Options:

  • CZ18 1 yr. program: Dec. 22, 2017 through Sept. 25, 2018
  • SX18 1 yr. program: Dec. 22, 2017 through Sept. 25, 2018
  • CZ19 2 yr. program: Dec. 22, 2017 through Sept. 24, 2019
  • SX19 2 yr. program: Dec. 22, 2017 through Sept. 24, 2019

Price Adjustment:

  • Market Pros Base: $0.09 per bushel

Performance Adjustment: None
Price Balance Option: Included with the Freedom Trader Base price adjustment for no additional charge.
Program Attribute: Third-Party Pricing



All bushels are guaranteed to price.
Basis may be attached at any time during the pricing period. Standard HTA policies and fees may apply.

Freedom Tech

The Andersons Freedom Tech

As its name implies, our Freedom® Tech℠ program uses technical indicators to set pricing. Buy and sell signals are set in place so you know exactly what to expect and when. This program combines technical indicators with professional implementation for a balanced approach.

Goal:

Remove emotion and provide additional diversification in your risk management plan by taking advantage of back-test, optimized technical indicators to price the bushels.

Benefits:

  • Diversified hedging style
  • Uses the slow stochastic indicator for both sell and buy signals
  • Provides a futures price

Enrollment Deadline Soon: Dec. 19, 2017
Pricing Window: Dec. 20, 2017 through Sept. 19, 2018
Futures Reference: CZ18 and SX18
Price Adjustment:

  • Freedom Tech Base†: $0.06 per bushel
  • Freedom Tech Prime: $0.08 per bushel

Performance Adjustment: None
Price Balance Option: Included with the Freedom Trader Prime price adjustment for no additional charge; available for an additional $0.04 per bushel with the Freedom Trader Base price adjustment.
Program Attribute: Technically Triggered Pricing

Pricing Triggers

Sell Signal:
The stochastic (momentum) indicator reaches overbought territory and starts to turn over, reflecting weakness. When this happens, 25% of bushels are sold.

Buy Signal:
The stochastic indicator reaches oversold territory and starts to turn up, reflecting potential price strength. If the buy signal is reached and two sell signals were previously triggered, then 10% of bushels are purchased. However, the Freedom® Tech℠ program will never trigger more than two buy signals in a row. After a buy signal, the following sell signal will increase the number of bushels sold by the number of bushels bought.

(If the pricing mechanism does not price 100% of the bushels, the remainder of the unpriced bushels will be priced using the market close on the final day of pricing.)

Freedom Tech - Historical Pricing Chart



All bushels are guaranteed to price. Basis may be attached at any time during the pricing period. Standard HTA policies and fees may apply.

Price Balance Option (PBO) is available for an additional $0.04 per bushel.

Min/Max Avg

The Andersons Min Max Average

Our Freedom® Min/Max Average℠ program establishes both a minimum and maximum hedge price at the start of the pricing window.

The Andersons Freedom Min/Max

A. If the market settlement goes above the maximum, that day’s value is set at the maximum price.

B. If the market settlement is anywhere in-between, that day’s value is set at the day’s market settlement price.

C. If the market settlement falls below the minimum, that day’s value is set at the minimum price.

The Andersons FreedomFinal pricing is determined by the simple average of each daily price.

 

Price Adjustment: Dependent on minimum and maximum price levels vs. the market.

Price Balance Option: $0.04 per bushel

 

Pricing window and futures reference subject to daily quotes.

Min Price

The Andersons Min Price Average

Our Freedom® Min Price Average℠ program has the same pricing feature as the Freedom® Min/Max Average℠ program, but there is no set maximum hedge price established at the start of the pricing window.

The Andersons Freedom Min Price

A: If the market settlement is above the minimum, that day’s value is set at the day’s market settlement price.

B: If the market settlement falls below the minimum, that day’s value is set at the minimum price.

The Andersons FreedomFinal pricing is determined by the simple average of each daily price.

 

Price Adjustment: Dependent on minimum price levels vs. the market.

Price Balance Option: $0.04 per bushel

 

Pricing window and futures reference subject to daily quotes.

Daily Avg

The Andersons Daily Average

Our Freedom® Daily Average℠ program helps you gain pricing flexibility. Just as the name implies, it allows you to price your contract by taking advantage of the average daily market settlement during a defined pricing window.

The Andersons Freedom Daily Price

A: This program will price equal amounts daily at the market settlement price.

The Andersons FreedomFinal pricing is determined by the simple average of each daily price.

 

Price Adjustment: $0.03 per bushel

Price Balance Option: $0.01 per bushel

 

Pricing window and futures reference subject to daily quotes.

Premium Plus

The Andersons Premium Plus

Our Freedom® Premium Plus℠ program pays you a premium on an initial quantity of grain when you commit to selling a like quantity for deferred delivery.

Benefits of Freedom Premium Plus:

  • Allows you to add premium to a grain contract.
  • You choose the target price and pricing date (target date) for the firm offer bushels.
  • Setting a target price benefits marketing plans for deferred delivery grain.

Potential Risks of Freedom Premium Plus:

  • The only time you may price the deferred delivery grain is on the target date after the market closes.
  • Regardless of how high the futures price exceeds the target price on the target date, your final cash price for the grain on firm offer will be the target price adjusted for local basis.
  • Should futures price move above the target price before the target date, the deferred delivery grain on firm offer cannot be priced.

 

Target price, target date, futures reference and applicable premium subject to daily quotes.