Sales: Forward Pricing Program
CF Industries’ Forward Pricing Program (FPP) is an innovative tool designed to help customers manage future price risk when buying fertilizer. The program offers customers the opportunity to contract for future purchases, generally up to twelve months out, at a specified price, delivery time, and volume. Once a customer places an order under the FPP, CF Industries assures that the contracted volume of a quality fertilizer product will be available at the contracted price, regardless of potentially volatile market conditions.
During 2006, approximately 44 percent of the company’s nitrogen fertilizers and 14 percent of its phosphate fertilizers were sold under the FPP.