Extension
Date of this Version
1-1979
Abstract
The use of cash contracts inmarketing cash
grain is fairlycommon among Nebraska producers,
In recent years the same type of contract has been used in m
marketing livestock, in some instances contracts are used to
defer actual delivery.for a short time until arrangements can
be made for transpofting the physical commodity to the buyer.
In others, the contract sale is made weeks or months before
production iscompleted, Some producers usecontracts asa
marketing tool year after year, but in most cases the contract
becomes part of the marketing plan when the producer feels it
is "appropriate."
Determination ofwhen contracting is appropriate or not
appropriate is theconcern here, While it is impossible to
establish criteria that will fit everyproducer's individual
situation, aframe work is suggestedwhich will facilitate
individual decision making. An awarenessof the types of
contracts, with their pro and cons will help usto
keep themin theirproper perspective so that
their performance can be properly evaluated..
Comments
Published by Agricultural Economics, report #EC 73-26, January 1979. The website address is http://www.agecon.unl.edu/realestate.html