For corn and soybean growers eyeing specialty grain opportunities, the first move isn’t buying seed — it’s calling a merchandiser. From transitioning to non-GMO yellow corn to implementing full organic systems, Clarkson Grain’s Kelsey Graber says the farmers who succeed in premium markets are the ones who secure buyers before they plant a single acre.
She strongly advises farmers not to plant any specialty crop “on speculation.” Instead, growers should always secure a signed contract with a buyer (such as Clarkson Grain, Scoular, or Cargill Specialty, etc.) that details the pricing structure, premium, and delivery window ahead of time.
“If you grow white corn or grow a waxy corn, and you don’t have a market for it, it might be impossible to get rid of,” Graber told farmers during a University of Illinois farmdoc webinar on Thursday. “That can really take away any net profit.”
Start With Low-Hanging Fruit
Graber, a 15-year grain marketing veteran based in Illinois, frames specialty crop opportunities on a spectrum, noting that some are much easier to start out with than others.
“Start with the low-hanging fruit,” she advises.
For most conventional row-crop farmers, that means starting with non-GMO yellow or white corn or non-GMO soybeans. The appeal of these crops is straightforward: they require only modest agronomic changes, come with lower seed costs, and offer a shot at premiums that stack directly on top of board prices.
White corn — whether grown conventionally or as non-GMO — is a particularly common first specialty crop because it is tied closely to stable food markets for tortillas and snack foods.
While the premiums for white corn aren’t always eye-popping, they become significant when conventional commodity prices are under pressure.
“Premiums are usually somewhere between 40 cents over the board of trade to somewhere between $1 and $2 over the board of trade,” she says.
With those dollar amounts in mind, most farmers should view specialty grain as a margin-boosting add-on, not a wholesale replacement for their current system, advises Nick Paulson, University of Illinois ag economist. He notes that most growers aren’t looking “to completely abandon conventional corn and beans,” but are trying to “bring in some differentiation without entirely changing” their operations.
Consider Where Yield Drag Can Be An Issue
Graber reminds growers that premiums only matter if net returns rise after yield and cost changes are factored in.
Paulson says even if there is some yield drag, the premium for non-GMO corn and soybeans often makes up the difference. His recommendation: evaluate specialty crops on gross return per acre, not yield outcome.
Ultimately, Graber says non-GMO crops can add meaningful dollars above conventional crops without forcing farmers to make a major operational stretch. Organics look highly lucrative on paper, but they can sometimes be more than what growers are ready or able to tackle.
“On non-GMOs, you can usually add somewhere around $200 an acre,” she says. “On organics, you can double to quadruple your income on the acre, but understand that there is a lot more management and labor that goes into it.”
The two charts below offer some insights on average premiums for various specialty crops in Illinois and potential yield drag:
Contract By Acre, Manage Risk By Design
To help growers manage that risk, Graber explains that Clarkson Grain focuses its contracts on acres rather than bushels. This structure lets the company match farm-level production directly to the food-company demand that it often books more than a year ahead.
Because the company typically contracts all production from those specific acres within a delivery window, it often helps absorb a portion of the farmer’s yield risk.
“If a customer has a crop failure and they had so many acres, we will work with them on that,” she says.
At the same time, Graber urges growers not to “plant and pray” when dealing with premium markets. Specialty grain with no buyer behind it can be incredibly tough to move, and the spot market swings hard.
“When I first started at Clarkson Grain, organic soybeans went from $36 a bushel down to $22 a bushel almost overnight,” she recalls. By contrast, she adds, “This year, you have organic yellow corn that people are fighting over.”
Her core advice for first-time specialty crop growers is to nail down a contract and delivery terms before ordering seed.
“If you are looking to shift into this, especially your first year, please lock that in,” she says. “With most of these programs, companies are willing to lock that in before you even plant it.”
Some companies, she adds, are offering contracts for 2027 already, as they work 12 to 18 months out.
Bins, Bags And Clean-Out: The Hidden Costs
In polling conducted during the webinar, farmers ranked segregation and storage as their top concerns for pursuing a premium market opportunity. Graber says those are indeed two of the biggest hurdles the company encounters on a regular basis.
“It’s obviously costly to put in a bin, and then we have limited space in our plant as well,” she notes.
Premium markets depend entirely on product purity. Clarkson Grain tests every inbound load for GMO presence, aflatoxin, and other quality metrics, assigning each load a lot number to track it through processing and shipment.
On the farm, executing that traceability means:
- Having dedicated or clearly segregated bin space
- Using careful planting patterns to limit cross-pollination with neighboring GMO crops
- Performing thorough equipment clean-outs
“Most of the contamination problems we see come from augers,” Graber says. “Somebody had loaded beans before, or loaded GMO corn before, and then they bring us corn, and it has beans or something in it.”
She notes that grain bags can work as a short-term segregation solution, but cautions that quality risks rise if deliveries get pushed into the warmer summer months.
“[The bags] definitely have been utilized, but it is worrisome just because the quality can’t be maintained as well,” she says. “We really have to keep quality top of mind.”
Use Non-GMO To Bridge Into Organics
For farmers who want to eventually capture organic opportunities, Graber positions non-GMO production as an excellent transition strategy during the required three-year conversion process.
However, growers must prepare for the operational changes required during those three years. “There is a real cost to it… you’re going to have to work the ground a couple extra times for cultivating to control weeds. You have to plant cover crops, and you have to remove those cover crops before you’re planting the crops,” she notes.
To navigate this, she recommends utilizing outside expertise — from University Extension, organic support groups, and certifiers — to help build a realistic three-year transition budget.
“I think it’s worth it once you get there, but it can be a tough three years to get there,” Graber says.
Start Local, Then Look Wider
For farmers unsure where to begin their search, Graber says the first call should be close to home.
“I would say just try your local elevator,” she advises. “A lot of elevators in this area are trying to grow these specialty programs.”
That includes river terminals with active white corn programs and regional processors with non-GMO soybean bids.
“ADM in Evansville, Ill., they’ve always had a white corn program… and I believe that they have been paying like $1.65 over the July board,” she reports, noting that non-GMO soybean programs at major processors in Decatur and Bloomington also remain active but limited.
Beyond local outlets, regional food-grade buyers and national specialty handlers maintain their own distinct programs. For organic options specifically, Graber urges farmers to utilize industry directories.
“If you’re looking for more companies to sell your product into, the Organic and Non-GMO Report source book… will tell you everybody who’s buying and selling these grains,” she says.
Ultimately, Graber says growers of all sizes — from 10-acre Amish farms to 100% organic operations — are successfully finding room for specialty acres in their rotations by starting small and scaling as they gain experience.
“We will work with anybody… we’re always looking to meet more people,” she says. “My biggest piece of advice is to start planning now.”
