RFA
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Basis Contract: Locking in basis and pricing grain at a later date. Stops storage and shrink if not in storage, potential for cash advancement. Eliminates downside basis risk. Cannot be rolled across crop years. HTA (Hedge to Arrive): Establishes the board price, final price is determined when the basis is set. Basis needs to be set prior to delivery or expiration of contract. Small fee/bushel. Allows you to take advantage of high board prices, with the opportunity of basis improving. Cannot be rolled across crop years.
Delayed Pricing: Passes ownership of grain to elevator upon delivery or thereafter. Charges may be subject to market conditions.
Price Target Offer: Allows producer to set a price and hope the market reaches it. Offer expires two months from entry date. Allows producer to take advantage of a market rally.
Managed Price Program: See PDF from Farmer's Keeper. Fee/ bushel. Allows professional grain broker to market your grain, takes emotion out of marketing.
Minimum Price Contract: Guarantees a minimum set price. A call option is bought to participate in a rally market. Minimum contract size 5k bushels.
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