- A (DP) Deferred Pricing contract will allow for the deliver of a previously specified amount of grain without establishing a cash price or a basis value on the grain at the time of shipment.
- In order to observe state law this contract needs to be signed, dated, and returned prior to delivery.
- Specific initial or monthly service charges and expiration date are determined by market conditions and will be configured upon the implementation of a Deferred Pricing Program.
- A (DP) Deferred Pricing contract may not be allowed to roll from one crop year to the next.
- At the time of pricing the contract will be subject to the nearby posted (spot) bid minue applicable service charges.
Example:
Prior to delivery grain in May a (DP) Deferred Pricing contract is established with a 10c initial charge and 3c per month thereafter expireing on July 31. The grain is delivered in May and priced out on July 23rd at the nearby bid of $3.94. After accounting for the charges associated with the contract the net price to the farmer is $3.80. | |
