Grain contracting strategies to induce delivery and performance in volatile markets

There are three purposes of this article. First is to provide a broad survey of contract terms used in grain contracting with growers. An emphasis on these terms relates to options and mechanisms used to entice performance. Second, we illustrate some issues in contracting of some of the grains (durum, malting barley) in the upper Midwest. Third, we show some of the common contract clausses being adapted in these contracts. Finally, we summarize these issues with respect to industry implications.