FREMAR LLC FLEX HEDGE CONTRACT

Flex Hedges must be done in increments of 5,000 bu. Minimum for each commodity. Fee per bushel shall be 5 cents per bushel per flex. 

A maximum of four flex hedges per contract will be allowed within a crop year. No contracts will be allowed to “roll” from one crop year to another under any circumstances, regardless of outcome or results attained utilizing the program.  This would also include lack of production due to weather, delayed planting, etc.  A 10% stop loss required on all Flex Hedge positions at time of entry. If a gain of 75 cents is realized, a mandatory 25 cents per bushel is added to stop, or effectively enforcing the use of a trailing stop.

If the initial contract price (HTA price level) declines by a cumulative $1.50 per bushel, that contact shall be ineligible for additional entries regardless of the number of flex hedges done prior (maximum $1.50 per bushel loss in contract year).  This is for all commodites- corn, soybeans, winter wheat, spring wheat. 

All orders must be done in person at the Fremar LLC main office in Marion.  No orders will be taken over the phone, email, fax etc.  Producer must be present and sign documentation at time of flex.

If a customer rolls a contract to capture a carry, the flex hedge in place at the time must be lifted to correspond with current market. (ie: Dec. hedge rolled to March would need to have a March Flex hedge, or later) In any event the bushels need to be delivered in the current crop year.

No flexing of grain after delivery, all flexing must be done on HTA and final pricing must be set prior to delivery of grain with basis established.  No rolling of HTA or flex from one crop year to the next.  All corn, milo, soybeans must have final price prior to September 1 of marketing year for September delivery.  All Winter Wheat and Spring Wheat must have final pricing of contract prior to June 15 of marketing year.  

Producer must be aware of the inherent risks associated with lifting hedges and must sign an initial disclosure document stating he is not only aware but agrees to subject the account to volatility of grain futures

Fremar LLC. Reserves the right to adopt additional requirements deemed necessary based upon changing market conditions

Producer must be the ultimate decision determiner as to new entries and exits and any market opinions, guidance, suggestion made by any Fremar LLC. Employee shall not be the sole basis for entering into a Flex Hedge.