Sale by Contract: Yes, No?

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\u27s 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.