COVID payment
Posted 5/22/2020 09:08 (#8273153 - in reply to #8271862)
Subject: RE: COVID payment

Leesburg, Ohio
Delayed price grain means you gave title of the grain to the elevator to do whatever they want to with it. All you own is a "right to price and a promise to pay".

I am almost ashamed to admit that DP was created by an Ohio State ag econ professor a few decades ago. The good thing about it, it gives the elevators the easy opportunity to move grain on out through the marketing channels during the glut of harvest, making more space available during harvest for those delivering grain then. The bad part...well just about everything else about DP is give up control of the physical bushels with no value received...the elevator has your grain and does not have to bid up later to get it. You don't have to build on-farm bins for that grain, but you give up the ability capture basis and carry during the marketing year. A real mixed bag, and mostly not in favor of the farmer.
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