DELAYED PRICING CONTRACT

A DELAYED PRICING CONTRACT allows transfer of ownership of the grain to be transferred to the Dakota Mill & Grain without establishing the price. Grain title, risk of storage and condition also pass to DMG. Pricing is done by the producer within a mutually agreed time falling within the time limits established in the contract. There will typically be charges to the farmer for delayed pricing bushels. This contract is not protected by the warehouseman's bond or grain dealers bond coverage. 

ADVANTAGES: The producer chooses when to sell the grain (within the agreed upon timetable); the price for the grain on Deferred Pricing Contract is the posted cash bid at the elevator (the same price as if the grain was in storage); can take advantage of price increases including both Futures and Basis gains. 

DISADVANTAGES: The producer has not eliminated either basis or futures risk; you no longer have title to the grain.