MINIMUM PRICE CONTRACTMinimum Price Contract • January 2nd, 2002
It’s October and you are harvesting corn. The bins are full, prices are low and you feel prices will advance sometime in the next 8 months.
A contract to sell grain that establishes a minimum price while offering the flexibility to capture unlimited upside opportunity if the market improves.Minimum Price Contract • May 16th, 2019
The producer agrees to sell a specific quantity of grain for a specific delivery period at a given price. The minimum price is determined by subtracting the cost of the upside participation from the contracted price. Upon delivery the producer will receive the pre-established minimum price, unless the market is above the participation level at delivery. The producer may receive some or all of the market improvement above the participation level.
