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Abstract
One of the impacts of higher prices along with greater volatility in futures and basis is that
there is pressure for an escalation in cash contracting for grain. This volatility has resulted in
an unprecedented level of contracting with growers in recent years. There is a wide array of
cash contracts with varying terms. There is also a growing realization of growers not delivering
on contracts, in part due to escalation in postcontract prices. These are evolving as
major strategic issues for buyers and the marketing system, particularly as buyers seek to use
such contracting strategies as an element of risk mitigation. There are three purposes of this
article. First is to provide a broad survey of contract terms used in grain contracting with
growers. Second, we illustrate some issues in contracting of some of the grains (durum,
malting barley) in the upper Midwest. Third, we show some of the common contract clauses
being adapted in these contracts. Finally, we summarize these issues with respect to industry
implications.