The producer is to price the beans during the period November 1996-August 1997 by selecting a commodity price as a reference. March-April Specialty seed is obtained by the producer. May 1996 Crop is planted. Crop is harvested and placed into storage by the producer. The crop is called and delivered to contrator's specified location.
Contractor then sells or processes the product delivered.
The grain has been under contract for approximately 21 months before reference price is selected. The producer has not been forced to price at a disadvantage. The processor has matched the flow of product to his facility to the capacity to handle or process it. Copyright 1996-2000, Iowa Grain Quality Initiative, Iowa State University, Ames, Iowa.