Posted by c-man on July 20, 2012 at 11:21:33 from (68.69.80.39):
How does it work for people that have already sold their corn, and now might not be able to raise enough to cover their contracts? We sold some millet one year about 3 weeks before harvest. It did not have an "act of God" clause in the contract, so we had to actually deliver the grain to the elevator. Not sure what would have happened if we couldn't produce the crop. I didn't rest easy until the contrat was filled. Had way less contracted than we raised, but nevertheless, a hailstorm or a couple rains after it was swathed down and we could have lost the entire crop. I know the "experts" are always telling producers not to sell their entire crop, maybe only 1/2 of what they expect or maybe 3/4 of what they expect. I understand there are places that won't raise 1/10th of what they expected to raise at planting time. And now with the upturn in the market, are these producers going to be in trouble? I remember several years ago, reading an article about a big operator selling his corn crop several years ahead. Wonder how that worked?
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