{"id":553,"date":"2024-06-28T03:31:00","date_gmt":"2024-06-28T03:31:00","guid":{"rendered":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/?page_id=553"},"modified":"2024-06-29T05:27:56","modified_gmt":"2024-06-29T05:27:56","slug":"flat-price-contract","status":"publish","type":"page","link":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/flat-price-contract\/","title":{"rendered":"Flat Price Contract"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"553\" class=\"elementor elementor-553\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f0bb944 e-flex e-con-boxed e-con e-parent\" data-id=\"f0bb944\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-37a63b4 elementor-widget elementor-widget-spacer\" data-id=\"37a63b4\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.22.0 - 26-06-2024 *\/\n.elementor-column .elementor-spacer-inner{height:var(--spacer-size)}.e-con{--container-widget-width:100%}.e-con-inner>.elementor-widget-spacer,.e-con>.elementor-widget-spacer{width:var(--container-widget-width,var(--spacer-size));--align-self:var(--container-widget-align-self,initial);--flex-shrink:0}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container,.e-con>.elementor-widget-spacer>.elementor-widget-container{height:100%;width:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer{height:100%}.e-con-inner>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner,.e-con>.elementor-widget-spacer>.elementor-widget-container>.elementor-spacer>.elementor-spacer-inner{height:var(--container-widget-height,var(--spacer-size))}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty,.e-con>.elementor-widget-spacer.elementor-widget-empty{position:relative;min-height:22px;min-width:22px}.e-con-inner>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon,.e-con>.elementor-widget-spacer.elementor-widget-empty .elementor-widget-empty-icon{position:absolute;top:0;bottom:0;left:0;right:0;margin:auto;padding:0;width:22px;height:22px}<\/style>\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5d429b1 e-flex e-con-boxed e-con e-parent\" data-id=\"5d429b1\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-564c19d elementor-widget elementor-widget-heading\" data-id=\"564c19d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.22.0 - 26-06-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">FLAT PRICE CONTRACTS<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-621cd39 e-flex e-con-boxed e-con e-parent\" data-id=\"621cd39\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-61127ff elementor-widget elementor-widget-spacer\" data-id=\"61127ff\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4f82381 e-flex e-con-boxed e-con e-parent\" data-id=\"4f82381\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-69ccce0 e-con-full e-flex e-con e-child\" data-id=\"69ccce0\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9664d16 elementor-widget elementor-widget-heading\" data-id=\"9664d16\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">DESCRIPTION : <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-efd84a2 elementor-widget elementor-widget-text-editor\" data-id=\"efd84a2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.22.0 - 26-06-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>This type of contract, also known as a &#8220;Flat Price&#8221; contract, transfers all price risk and opportunity from the seller to the buyer on the date of the trade.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d5d2995 elementor-widget elementor-widget-heading\" data-id=\"d5d2995\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">EXAMPLE : <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a8205b2 elementor-widget elementor-widget-text-editor\" data-id=\"a8205b2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>On July 1, a producer sells for November delivery and establishes a flat price of $2.30\/bushel.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-af7177a elementor-widget elementor-widget-heading\" data-id=\"af7177a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">RISK TO SELLER :<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8c70df1 elementor-widget elementor-widget-text-editor\" data-id=\"8c70df1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>All price risk is transferred to buyer on July 1. The seller carries opportunity risk that the market could raise and potential gains could be foregone. The seller is also subject to production risk; that is, the producer is responsible for delivering the contracted amount on the delivery date.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c5ff9dc elementor-widget elementor-widget-heading\" data-id=\"c5ff9dc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">RISK TO BUYER : <\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-49130a0 elementor-widget elementor-widget-text-editor\" data-id=\"49130a0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>On July 1, the buyer accepts two price risks: futures risk and basis risk.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9d02122 elementor-widget elementor-widget-heading\" data-id=\"9d02122\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">WHO MIGHT USE THIS CONTRACT ?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-80861ca elementor-widget elementor-widget-text-editor\" data-id=\"80861ca\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>A producer who wants to be insulated from any adverse price movement and who needs cash-flow\/income predictability<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-6ea134e e-con-full e-flex e-con e-child\" data-id=\"6ea134e\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-facc722 elementor-widget elementor-widget-heading\" data-id=\"facc722\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">UPSIDE PRICE POTENTIAL :<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d01baa8 elementor-widget elementor-widget-text-editor\" data-id=\"d01baa8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>None; the price is determined on July 1. Regardless of market moves, the price at delivery in November will be $2.30.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-36ac4c3 elementor-widget elementor-widget-heading\" data-id=\"36ac4c3\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">DOWNSIDE PRICE POTENTIAL :<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ddc4c27 elementor-widget elementor-widget-text-editor\" data-id=\"ddc4c27\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>None; even if the market drops, the $2.30 price is locked in. The producer does, however, take on the opportunity risk of a potential gain foregone if the market rises.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a27fc69 elementor-widget elementor-widget-heading\" data-id=\"a27fc69\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">WHEN MIGHT THE CONTRACT PERFORM WELL?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c0fe2d7 elementor-widget elementor-widget-text-editor\" data-id=\"c0fe2d7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This is not applicable because the sales price already has been established, regardless of price moves. From the seller&#8217;s perspective, the contract produces greater income when the per bushel is strong on July 1.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-edb9931 elementor-widget elementor-widget-heading\" data-id=\"edb9931\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">WHEN MIGHT THIS CONTRACT PERFORM POORLY ?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9e377b6 elementor-widget elementor-widget-text-editor\" data-id=\"9e377b6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This is not applicable because, regardless of market performance, the sales price is established on July 1 at the time the contract is entered<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-7c288c9 e-flex e-con-boxed e-con e-parent\" data-id=\"7c288c9\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a6383a6 elementor-widget elementor-widget-spacer\" data-id=\"a6383a6\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>FLAT PRICE CONTRACTS DESCRIPTION : This type of contract, also known as a &#8220;Flat Price&#8221; contract, transfers all price risk and opportunity from the seller to the buyer on the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-553","page","type-page","status-publish","hentry","entry"],"_links":{"self":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/pages\/553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/comments?post=553"}],"version-history":[{"count":19,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/pages\/553\/revisions"}],"predecessor-version":[{"id":1129,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/pages\/553\/revisions\/1129"}],"wp:attachment":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/media?parent=553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}