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Northern Illinois | yep. A few years ago I rented a farm from a farm management firm who used a price flex bonus due at the end of the year. The bonus was based on the average Dec price of Jan-Sept of the year. (yes they left Oct, Nov and Dec out of the formula) So a farmer could not get a true handle on what the cost of production would be. With the way rents change from year to year (to the higher) it is tough to miss out on a price rally because your rent next year is based on the assumption that you sold at the high. | |
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forward pricing
