Date of this Version



Published by Agricultural Economics, report #EC 73-26, January 1979. The website address is http://www.agecon.unl.edu/realestate.html


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..