Cargill AgHorizons, Minneapolis, MN, announced the expansion of the pilot of the Performance 90 grain contract, design to minimize production and marketing risk taken on by producers. This pilot will include 28 farm service centers across the country.
The Performance 90 grain contract establishes a targeted revenue for participants based on individual production history and December 2001 futures prices at the time of signing. Cargill will pay the producer a revenue adjustment if his or her production falls below 90% of historical yields.
Other changes include lower service fees, and protection for losses within the more common range of 75 to 90% of production.
Participants are required to develop a crop management plan and deliver all contracted grain to a Cargill AgHorizons facility or designated location. Only Cargill Hybrid Seed can be used with Performance 90 contracts, however there are five chemical companies in partnership with the program, and each can provide crop protection products: Novartis, Aventis, BASF, Dow Agro Sciences, and Zeneca Ag Products.
The pilot locations are Illinois, Indiana, Minnesota, Nebraska and Wisconsin.
For more information, circle B on the Reader Reply Coupon, or call 612-742-6000.