FAQ's: Forward Contracting
What if I do not raise enough to fill my contract?
Buchheit offers “rollover”, which enables you to move your obligation from one crop year to the next without any out-of-pocket expense. The amount of money that you will receive upon delivery will be adjusted slightly based on the difference in market price from one year to the next (called your “roll forward adjustment”). Keep in mind that Buchheit encourages you to only contract a portion of your anticipated crop. This helps prevent such situations form occurring.
What if the market rallies after I have already contracted for a lesser price?
Once your target price is reached, you cannot cancel your contract in hopes of receiving a better price. We encourage setting achievable target prices that are attainable, but still profitable. With Forward Contracting, you are not trying to receive the top price for your grain every year. It is about profitability in the long run.