Credit sales contracts for grain have been widely used as a marketing tool by farmers and elevators. For farmers, they represent a method (accepted by the IRS) to delay the recognition of grain income until a later tax period. During periods when storage capacity is short these contracts move grain into the market channel earlier than might otherwise be the case. Farmers can relinquish title at harvest or later delivery and still maintain pricing flexibility later in the year when prices may be stronger.
Ginder, Roger G., "Grain Elevator Credit Sales Contracts and Alternatives to Reduce Their Misuse" (1991). Economic Staff Paper Series. 230.