Act of God contracts are a popular way of reducing yield risk for specialty crops with no futures market. According to National Sunflower Association Executive Director John Sandbakken, Act of God Contracts allow farmers to lock in prices now for fall delivery. “It takes some of that risk away,” Sandbakken said. “It’s just another incentive to plant the acres and handle the risk a little better.” With Act of God contracts backing them, Sandbakken sees sunflowers and other specialty crops as a way to diversify market risk.
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