Forward cash contracts or futures hedges have been the most common methods of forward sales in the past. But when used properly, HTA contracts provide a cash market alternative to a futures hedge. The use of options can also avoid or help offset delivery problems resulting from reduced production. Historically, this late spring or early summer period provides a good opportunity to make new crop sales before prices typically decline into harvest. This year, new crop bids have offered prices that should be profitable.
Good marketing involves taking advantage of good prices when they are offered.
President Clinton signed the legislation a week later. Production Flexibility Contract payments are fixed declining payments over the next seven years, calculated on farm base acres. These payments will be distributed in two payments each year. Increases planting flexibility, allowing planting of any major crop on contract acres except fruits and vegetables. Haying and grazing is permitted, including planting such crops as alfalfa, with no penalty.