Forward Cash Contract

Execution:

1. Contact FFGE local elevator to lock in cash price for some time frame in the future
2. Deliver grain as agreed
3. Receive payment

Strategy:

This contract can be used for two different marketing strategies:

1. Use the forward contract to lock in a favorable new crop price before your crop is planted or harvested.
2. The forward contract can also be used to "lock in a carry." The market may pay more for grain delivered at a later date. If the forward price is greater than the current price plus your storage and interest costs, it would be beneficial to lock in the higher price.

Advantages:

• Easy to execute
• Eliminates all risk of price decrease
• Ability to lock in the carry

Fees:

None