If he has 1000 bu contracted and can't deliver it because of weather issue he will have to pay the difference between the cash price and his contracted price. He will not have to pay the elevator $3800. If the current cash price is $4.80 he would owe $1.00 a bu. plus any penalty the elevator would want so it would be $1,000 not $3,800. In the same manor if the price was $1.00 higher in the fall his insurance payment would be $1.00 per lost bu. higher then what it would of been with the spring price.