The board will choose the strike price. At harvest, producers will have a minimum price available to them. The strike price will be determined later and at delivery, the producer will receive the initial payment. All the rules of cash pricing apply equally to minimum pricing. Producers wishing to have a basis contract were able to do so starting September 1, 1998.
Producers can lock in the current basis and sign a contract for specific tonnes.
Producers can fix their price either prior to or during harvest, or any day up to December 31. Producers who have not priced at time of delivery will receive the landed basis initial payment, and final settlement will occur at date of pricing. Producers must deliver their wheat prior to any payment. All rules of the cash pricing option apply equally to basis sales. Any returned exemptions may be re-issued, providing there is sufficient demand, up to October 15.