The seller delivers grain and maintains ownership of the grain. The grain is stored in a way to ensure its long-term quality. Grain delivered below the necessary storage standards will be upgraded, but discounts will apply.
Seller maintains grain title
Seller can avoid selling at historically low prices (i.e., harvest)
After storage fees are paid, seller can haul the grain out of the warehouse
With receipt, the grain value can be used as loan collateral
Grain may be discounted more than contracted
Storage costs may be higher than market spreads