Deferred Payments *NEW*
Deferred payments are now permanently allowed under the Grain Act.
All deferred payments under 180 days are eligible for declining coverage under the insurance provisions of the Grain Financial Protection Program.
The dealer will simply be required to provide the producer requesting the deferred payment with written confirmation of:
The initial payment for Basis Contracts has changed from 75% to 60%.
Elevators/Dealers will have five (5) trading days to pay for Grain Sold Out of Storage which has changed the terms of payment from 2:00 p.m. the next trading day to 2:00 p.m. on the fifth trading day.
1. Upon delivery of grain against an open basis contract, the seller is entitled to an advance of funds equal to 60% of the cash value of the grain using the current value of the designated futures month. Any charges owing to Ganaraska will be deducted from the advance in full. Once Ganaraska charges are satisfied, any amounts owing by the seller for crop loans and advances will be deducted from the gross advance.
2. Ganaraska reserves the right to limit pricing of Basis contracts subject to when the Chicago Board of Trade is open and trading.
3. All basis contracts must be priced prior to the first notice day of the futures month designated in the contract, unless otherwise stated or unless switched.
4. Basis contracts not priced or previously switched will be switched to the next futures month at our discretion prior to the first notice day of the designated futures month. The next futures month will then become the “designated month” for the basis contract. A switching fee of $.04 per bushel will be charged at the time of switching.
5. If at any time the gross advance amount exceeds 95% of the cash value of the grain using the current value of the designated futures month a margin call will be triggered. The margin required to be paid by the seller to Ganaraska will reduce the gross advance amount back to 75% of the cash value of the grain using the current value of the designated futures month.
6. Margin calls will be due within 10 business days from notification by invoice of the margin amount owing. If Ganaraska does not receive the margin amount within the 10 business days, Ganaraska reserves the right to price out the basis contract using the closing Chicago Board of Trade futures price of the designated month on any day after the 10th business day. Any equity or deficit in the contract will be paid or invoiced to the seller, respectively.
7. Sellers who have multiple basis contracts outstanding will have their contracts combined for the purpose of determining margin owing.
There will be a $.25 per bushel administration fee. The unfilled portion of contract will be acessed. Any replacement cost for filling the contract will be passed on to the producer.