GPC Muscatine
(DP) Deferred Pricing Contract
Contracts Offered
Basis Unpriced
Delay Payment
Deferred Price
- 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.


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.
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