You want to price 100,000 bu of your soybeans for delivery in March. Historically, your local basis is around $0.55 /bu in March. You check the futures market and saw that the futures price for March delivery is trading at $14.40/ bu. Then you call your local grain elevator and the manager offers two contracts with the following specifications: (1) Hedge-to-arrive contract: 5% advance payment, $0.03/ bu service fee. (2) Basis contract: basis set at $0.50/ bu, 35% advance payment, no service fee. You know that you will need some cash during the winter, so you need to raise some funds within the next couple of months. Further, you believe that the futures price will start decreasing during the winter, but your local basis will narrow compared to its historical level. Based on all the information above, discuss in detail which of these two contracts you would choose to price your grain today