Transparency

To better align supply and demand, we need to know exactly what clients need on the day we bale, or before, so we can put the hay up in the format that clients prefer. Specifically we need to know if square bales are preferred, or round bales. Special sizes are possible by simple programming the baler computer, but we really need preordering, so nobody has to wait when bales are being formed. For the 2023 crop year we plan on using an options market to better align baling with customer needs. Knowing how many square bales are needed to meet demands helps assure that we do not get stuck with bales laying in the field. The system allows clients to request a specific amount of hay in a specific format. Inputs will be used to establish a rank order based on when the order is received. Established customers have already requested 2023 crop year hay and will get preference. Finalizing quantities is needed. If yield is less than demand, for a particular crop, preference for the next crop can be provided. We want a diverse customer base that best serves local communities, so we will limit the maximum option to no more than 1000 bales. It is difficult to pick up large quantities quickly. Efforts will be made to balance supply with demand. In situations where demand significantly exceeds supply, it may be most fair to use an allocation system where we for example, provide 80% of the requested amount. At some point we will likely evolve to system serving primarily a dedicated customer base comprised of long-term customers, with only a small stream of hay being available to new customers. Since we are significantly expanding acreage, and adding sainfoin, we are still in a growth phase.