Price Later contract otherwise known as a deferred Pricing Contract
Allows the delivery of a commodity and price to a later date, upon delivery, title of commodity is transferred to elevator and there is no time limit to the price and amount of the commodity that can be delivered.
There are many advantages to using eGrain System -Using a secure web based system of record, grain contracts can be electronically created, and settlements recorded by licensed grain dealers from the click of a button and electronically signed.
- NO more cumbersome process that is inefficient and costly
- NO more pre-printed or paper contracts with 100% accountability whether used or not
- NO more filing for several years after being executed
- NO more required written signature of both the buyer and seller within 30 days to be valid
Using eGrain electronic contracts meets regulatory requirement for Individual state licensing authority regulations for format and content. By eGrains enabling price later contract information to be electronically transferred to regulatory field staff through Electronic Data Interchange (EDI) can eliminate or shorter on-site examinations by easily creating customized reports to provide to state and federal examiners.
Electronic Signatures and automatic notifications are priceless!
The eGrain System makes the process of tracking and collecting producer signatures much easier and more convenient. Producers that utilize the eGrain System are automatically notified by email when contracts are issued and/or changes are made to the basis, terms, and settlements. The email instructs the producers to login to the eGrain System to review, print, sign and return the contract. Grain dealers record the date contracts are signed and can instantly sort their open contracts to show those yet to be signed by the producer. In addition, some states allow both parties to electronically sign these contracts, making this process even more efficient and eliminating the need to mail contracts back and forth.
Grain dealers can also utilize the eGrain System to print paper contracts and have both parties physically sign them. The eGrain System can still be used with these paper contracts to store contract information and manage changes to basis, terms, and settlements.
The Key benefits to: Licensed Grain Dealers, Producers, and Farm Managers, & Licensing Authorities
KEY BENEFITS FOR GRAIN DEALERS
The eGrain System improves many business processes and efficiencies by enabling grain dealers to provide valuable time and cost savings to their producers who appreciate the convenience of doing business electronically. The eGrain electronic price later contracts system offers Grain Dealers long-term secure storage solution. The filing and safeguarding of contracts in our system which can be used as a stand-alone system or as an added back up to the grain dealer’s paper filing system.
Grain dealers will no longer have to maintain paper price later contracts, worry when running low on contracts. The eGrain System eliminates the need to maintain a separate supply of pre-printed, paper contracts at each facility, since electronic contracts are instantly available and can be used across the entire company.
eGrain System can greatly improve the efficiency of management control by allowing the ability to easily monitor and manage contract activity throughout the entire operation. If a grain dealer prefers, they can centralize the issuance and management of a price later contracts to one location and can authorize certain employees to different roles, including issuing contracts or view only access.
KEY BENEFITS FOR PRODUCERS AND FARM MANAGERS
The eGrain System can reduce or eliminate the need for producers/landlords to make power of attorney arrangements for someone else to enter into contracts for them while they are away from home. eGrain allows producers to utilize the eGrain System free of charge and this can be an added service offered by the grain dealer.
In addition, producers and farm managers can utilize the eGrain System as a supplemental record keeping system for tracking their grain transactions. The eGrain System notifies producers when a new contract is created and when changes have been made to the terms, basis, and/or settlement. In addition, some states allow both parties to electronically sign these contracts, thus eliminating the need to send contracts through the mail.
Producers and farm managers have access to their contracts and settlement history and have the ability to create customized reports, 24 hours a day, 7 days a week. Electronic contracts allow producers who work off-farm jobs to electronically access their contracts at their convenience, to review, print and sign contracts at any time of the day or night from any location with Internet access.