Get a premium when you agree to sell additional production

This contract pays a premium on grain sold today in exchange for a Firm Offer to sell additional Deferred Delivery grain. With a better cash price and the freedom to set your own contract values, a Premium Offer makes an exciting addition to your grain marketing plan. A Premium Offer is a great option for growers who want an upfront payment for a future commitment to sell additional production, as well as those who intend to make forward delivery commitments.

When is a good time to use this contract?

  • At harvest, when you want upfront premium on harvest deliveries with a Firm Offer established on grain you can store for the winter
  • Prior to harvest, when you want to receive an upfront premium on winter deliveries plus help with spring purchases through the Firm Offer established on new crop production 

What should I consider before choosing it? 

  • The Firm Offer does not guarantee the deferred sale of the grain.
  • There’s always a chance the market could rally and exceed your Firm Offer Price before your Pricing Date, but then fall below your price on your Pricing Date
  • The market could be trading higher than your Firm Offer Price on the Pricing Date 

If you’re interested in learning more about Premium Offer, download an info sheet or contact your Cargill Representative.