We offer production contracts for both conventional and organic grains, all certified by the Canadian Grain Commission.


Our Deferred Delivery Contract has the advantage of allowing the grower to lock in the price of their grain for delivery in the future. The commodity, price, quality, tonnage, delivery location and delivery period are stated along with other terms of the contract. Growers choose the price, delivery month and payment timing most favourable to them. The prices are based upon market conditions as well as Paterson Grain’s sales program in effect for each month.


A Basis Contract gives the grower an ability to lock in the basis, (difference between the cash price and the futures market), which is made up of all the costs associated with delivery of the commodity, such as cost of elevation, storage, interest and transportation. By this contract, a grower can obtain a favourable basis level while waiting to lock in futures price, even after the delivery of the grain and also allows the producer move grain during a preferred time period (Example Harvest Delivery). The grower has until the last business day of the month prior to the delivery month to lock in the futures price, or roll to the next futures month. This contract will have all the terms of the deferred delivery contract, except the futures price has yet to be locked in.


A Profit Plus Minimum Price Contract provides a guaranteed price for a specific amount of a specific commodity within a certain delivery period. This allows the grower to be paid the guaranteed minimum price of the contract at the time of delivery while still having the ability to capture any gains on the futures market – all of this with no downside risk. The grower has a specific period in which to capture any gains in the market.


Our Profit Plus Advance Contract allows the producer to receive an initial payment after delivering product to the elevator, and locking in a basis contract (difference between the cash price and the futures market). Head office will issue payment, and when the grower is ready to price the balance of the contract, the elevator will price the Profit Plus Advance contract and issue a cash ticket. This allows a producer to get an initial payment for cash flow on delivered grain while waiting to fully price the grain. Under the terms of this contract the producer has a specific time period in which their delivered grain must be priced.


Under the terms of a Futures Only Contract Paterson Grain will lock in the futures price of a specified quantity of grain for future delivery, with the benefit on not locking in a basis or delivery period. This allows the producer opportunity to seek more favourable basis levels and/or wait to determine which delivery period will work best for them. Once a basis and/or deliver period is chosen a Deferred Delivery Contract is created. This also allows producers to forward price production in future crop years while not locking in basis or delivery period.


Under the terms of a Target Price Agreement, Paterson Grain will lock in the specified grain on a Deferred Delivery Contract at the “target price” if the market is reached within a selected time period. This allows the grower to lock in a price without having to watch the market. The most commonly selected time periods are 30, 60, or 90 days after which the target expires or other time period chosen. If the target price is not reached within the selected time period the grower has no commitment to deliver the grain, however the grower may renew at the same target, or a different target, for the same or a different selected time period. Target prices can be placed for any delivery period for futures only, basis only, both basis and futures or a flat price.