Premium Price Program

The Premium Price Program allows you to obtain a premium above the current market on a new to-be-delivered contract with a conditional firm offer to sell the same quantity of bushels at a selected target price.

How It Works

Working with your local Bartlett merchandiser you sell a quantity of grain and define a conditional offer price and expiration date. These will determine the premium to be applied to your contracted bushels while setting the target on your conditional price offer bushels.

If on the target expiration date futures prices are above your conditional offer price, you are committed to sell an additional quantity at the selected price.

If on the expiration date futures prices are below your conditional offer price, you are not committed to sell any additional bushels beyond the original contracted quantity.


You contract 10,000 bushels of corn for nearby delivery via Bartlett’s Premium Price Program. Working with your local merchandiser, you select $5.00 March futures as your conditional offer price.

The current nearby corn futures price is $4.70. The selected $5.00 March conditional offer adds $0.25 to your premium contract.

The elevator is posting a +$0.10 basis for nearby delivery, so you receive $5.05 for your Premium Price contracted corn.

$4.70 futures + $0.10 basis + $0.25 premium = $5.05 cash price

Scenario 1

On February 21 (target expiration date) March corn futures settle at $4.75, below the $5.00 conditional offer price. You do not owe any additional bushels against this contract. All obligations are covered with the initial 10,000 bushels for nearby delivery.

Scenario 2

On February 21 March corn futures settle at $5.25, above the $5.00 conditional offer price. You are committed to deliver an additional 10,000 bushels against your conditional offer at $5.00 March futures. These bushels are on a futures-price-only contract and must have basis established prior to delivery.

Premium Price Contract Program Details

  • The number of bushels on your conditional price offer will be equal to the bushel quantity in your premium contract.
  • If the futures price exceeds the target price on the target expiration date, your conditional price offer bushels will be priced at the target level.
  • Conditional price offer bushels cannot be priced early. They can only be priced on or after the defined target expiration date.