No minimum or maximum amount Contract must be signed 30 days after completion of delivery to be valid. Basis Contract Allows you to lock in a basis that is over or under a specific futures contract Important to have historical basis information Price received is the futures month price, plus or minus the basis level agreed to in the contract. Title is transferred go to the top of this page Deferred Payment Program Quite often farmers need to defer the income from grain that they sell, waiting to collect the proceeds from the sale in the next tax year. The only generally misunderstood rule about an arms length contract is that to be accepted by the IRS, it must be signed prior to the delivery and sale of the grain. Assumption Coop will be glad to work with you on deferring grain payments, and on a timely basis, will see that your check is delivered to you when you want it.
Advantages Allows maximum use of money without excess tax burdens.
Disadvantages Causes the producer to wait for money that could be put to use today. A minimum price contract is a cash marketing alternative that combines some of the characteristics of a forward contract, a basis contract , and ag. options. In addition to our high service grain elevator business, Assumption Cooperative Grain Company has also become a very active player in the direct marketing business. While most farmers still see the value of selling their grain through the local elevator and taking advantage of the many services and marketing programs that are offered, some farmers have decided to load semi-trailers of grain to be delivered direct to the local terminal or processor. Assumption Coop will gladly work with you on any direct delivery grain you wish to market.