minimum price contract
- A combined commercial forward contract for farm goods that promises the minimum selling price to the farmer, which helps mitigate potential price risks
- Under the minimum price contract, the farmer can ensure he gets a certain price for his wheat yield.
- Thanks to the minimum price contract, the apple grower didn't have to worry about their finances if the market price plummeted.
- While signing a minimum price contract, the corn producer could guarantee a baseline income from her crops.