Definitions & Contracts Available to Patrons

Contact your local Farm Marketing Specialist for more details on specific contract options.
 
 
Doug Cropp: 
Office: (217)599-5068  
 
Ed Hannagan: 
Office: (217)599-5017 Cell: (217)621-7126 
Kurt Simmons:
Office: (217)897-1111 Cell: (217)714-2191 
Darrin Wax: 
Office: (217)599-0302 Cell: (217)621-0270 
Lane Avenatti: 
Office: (217)733-2182 Cell: (217)480-5480
 

 

  • Basis

    • The difference between a Chicago Board of Trade futures price and a cash price. (Not profit)
  • Contract

    • A genuine mutual agreement between two or more competent parties to do or not to do something that is lawful for a sufficient consideration; it is an agreement which, when violated, will support the award of damage to the injured party.
  • Spot Contract

    • Price at the close of market day used in pricing grain delivered with no contract.
  • Forward Contract

    • A contract for a specific time shipment and price in the future.
  • Basis Contract

    • A contract for which the basis has been fixed, or predetermined, in the contract. Normally a delivery date is also established at this time.
  • NBE Contract

    • A contract for which the futures has been fixed for a established time of delivery of grain and the basis to be set any time before delivery.
  • Deferred Payment

    • A contract to pay a specified price at a specified time for grain that has already been delivered and priced. (Is used by the farmer to defer income.)
  • Price Later

    • Grain delivered with a price to be established by a set time. (Sometimes for a set charge.)
  • Warehouse Receipt

    • Negotiable document, issued in Certificate form by the warehouseman in receipt for grain received and can be used as collateral or security.
  • Open Storage

    • Grain stored under informal agreement with a storage facility or local grain elevator.
  • Minimum Price Contract

    • The minimum price contract is an option based contract that establishes a minimum price guarantee but allows upward price enhancement should that occur. Like a forward contract, it can be used before planting, during the growing season, at harvest or after harvest.
  • Offer

    • A binding contract between the buyer and seller for a specified amount of grain if a set price is reached for a specific shipment period, by a set date, unless
      cancelled.
  • KO Accumulator With Parachute

    • Allows the Producer to price above the current market with an assurance that the entire base quantity is price.
  • No KO Accumulator With Floor

    • Allows the Producer to price above the current market with a Minimum Floor Price established and assurance the full base quantity is priced.
  • KO Accumulator

    • Allows the Producer to price above the current market in exchange for Knock Out and Potential Double Up Risk.
  • No KO Accumulator With Non Pricing Level

    • Allows the Producer to price above the current market in exchange for potential Double Up Risk and non price bushels.
  • KO Accumulator With Reset

    • Allows the Producer to price above the current market without Double Up Risk in exchange for Knock Out Risk.
  • NO KO Accumulator With Reset

    • Allows the Producer to price above the current market without Double Up Risk or Knock Out Risk.
  • Accumulating Average

    • Allows the Producer to place a floor under the market but allow for upside price potential to still exist.