Grain Offer Contract


A grain offer contract allows the producer to set a price in which the elevator will price their grain without the producer having to watch the market continuously.  This works if you have a price that you would like to get for your grain, but do not have time to continuously watch the markets.

Advantages:

  • The producer can set a price with the elevator that he would like to receive and the elevator then watches the markets and will automatically sell the grain if it reaces that price.
  • The producer can set a marketing plan that will allow him to easily reach his price goals.
  • Helps control emotions that drive the producer to not sell even when it reaches their goal price.
  • Can be used for New Crop contracts, cash sales, or for an installment sale.

Disadvantages:

  • Offer good for 30 days unless producer signifies different.
  • Offer may be forgotten about.
  • Market may go through offer price.
  • Offers may not be reached.