Crop Contracting
PCCA, in cooperation with The Seam, has developed a forward acres contracting system for Texas, Oklahoma and Kansas cotton. The contract system allows producers to offer acres, through their local gin, to buyers on The Seam. Producers can select contract specifications from choices provided by PCCA. Buyers can purchase acres at the grower’s firm offer price, counter bid and/or send messages (very similar to trading bales on The Seam). Once the buyer and seller have reached an agreement on price, the gin will get all appropriate paperwork signed and sent to PCCA.
PCCA operates as the principal to all contracts with the producer, and therefore, assumes responsibility for payment to the producer. The acres are offered to financially-secure merchants or companies who are willing to provide some level of financial guarantee.