Installment Sale of Grain

This contract allows the producer to defer payment to the tax year that best suits their financial situation.

Advantages:

  • The grain has been sold and is not subject to market fluctuations
  • Interest can be paid or can be waived at the producers option.
  • Payment will be made on the first business day after the new year.
  • Can use in combination with other marketing options. (Ex. Minimum price contract)

Disadvantages:

  • Locks in price of grain and limits profit potential unless used with a minimum price contract
  • Subject to tax laws (consult your tax advisor for tax implications of multiple year contracts).
  • Cannot take payment early after contract has been made.