The Fence Contract (also know as a Min/Max Contract), minimizes the lows along with the highs of milk price volatility. The Fence Contract allows the member to have a price floor and a ceiling price, for a per hundredweight fee. Their actual forward contract price will settle somewhere in the range between the floor and the ceiling price.

• The Fence Contract can generally have lower fees than a floor contract.

Click here for more details on the Fence Contract.