This may reflect internal management policies, tax considerations or other reasons unrelated to price. There may be a handling intermediary involved, such as a local private or cooperative country elevator. It's also worth reviewing a few points from the growers' perspective. Counterparty credit risk Producers can insure against some risks. Private crop insurance offers several ways to minimize the impact of production yield variability.
Crop insurance can also provide some revenue protection.
Some growers may willingly sacrifice the chance for high prices to avoid suffering in steep bear markets. For example, lenders may find a long-term grower contract to be a strong asset in collateralizing financing needs for growers. But specialty crop contracts should address grower concerns up front. Longer-term fixed price contracts don't necessarily ensure cash flow requirements for the grower, and likely don't address tax considerations either. This can be partially a result of the buyer demanding a specific delivery schedule.