Fall contracts

[blackpowder]

Not too long ago here were in that position. Bought out of contracts in June and by fall had enuf production to fill them anyway. If i remember correctly the price fell enuf as well. Lesson, never panic.

[SASKFARMER3]

It's not fun but if it's a shot show on your farm but it out! We hot hailed out on a lot of peas the rest flooded! We had no production! Watched market and the stats can say they announced all the pea acres we bought out still cost $7,000 . Now a contract should be a contract! Grain companies have one sided shit show that is one sided only! It's not farmer friendly!
Also in a low value year why presell or targets, your just guaranteeing them a cheap purchase and keep prices down!
If you sign it put on the big pants it's your baby!

[tweety]

"It's not fun but if it's a shot show on your farm but it out!"

No comprende.

[blackpowder]

shit show buy it out

[farmaholic]

He nos, he not stoopid. Just trying two git a responce...

[tweety]

Is there a like anywhere i can click!

Why won't it ****ing RRRAAAAAIIIIIINNNNN!

Hate to see those plants suffer.

[BreadWinner]

These are "production contracts" and as long as the crop isn't written off by crop insurance or hail you can't buy it out. . If you don't have enough on time of delivery they you pay up.... if you don't think you can cover your contract you bet buy a call option to protect against the market going up. Viterra will just bill your input account and its your problem. Some companies are good to deal with and some are non negotiable. I have learnt to grow the crop then sell it....not the other way around.

I contracted $1.50 oats once and it froze, the market went to $3.00. I only grew half of my contract and all the oats produced were used to buy out the other half of the contract. Real expensive education in grain marketing.

[farmaholic]

Which plants tweety, the crushing plants?

[errolanderson]

The advantage of put options . . . .

No production and/or delivery obligation

[Braveheart]

We use fall cash contracts. The price protection is always good. Cash always is needed. Also, contracts allow us access to the elevator system when, hopefully, we don't have enough storage.