Minimum Price Contracting
Producer sells grain at the current minimum price and is eligible to receive that price plus any increase in a specific futures month.
Minimum price contracting is comparable to purchasing crop insurance. For a small fee (which is automatically figured into your minimum bid so there is no check to write), you can establish a price floor for yourself and at the same time enable yourself to participate in a market rally, if or when it may occur.
With minimum price contracting...
THERE IS NO DOWNSIDE PRICE RISK
YOU ARE ABLE TO PARTICIPATE IN HIGHER PRICES
YOU ARE PAID THE MINIMUM AT HARVEST
IT ELIMINATES DP & STORAGE COSTS
YOUR GRAIN IS SOLD!