If I can sell stover on the cash market at a later date at a higher price, why would I lock in seven years with Next Step?
No one knows what the future market for stover will be. But it seems certain that without buyers like Next Step it will remain low. Next Step and other potential stover buyers simply cannot undertake the huge capital risks needed to become viable buyers with out first contracting for a price-predictable supply of stover. It seems equally certain that sellers will have more stover to sell than the amount they have committed to Next Step. So, if prices shoot up, the un-contracted portion can always be sold at the market rate.
