Just because most people don't know their credit score doesn't change the fact that they have one, and it is used to determine their interest rate on a loan. They can and should know it when shopping for a loan.

The incentive to enter a contract is multifold. It gives a garanteed price so a feeder can arrange financing for further purchases. It can get a feeder into a grid selling system to take advantage of the better genetics they have been buying. It might be as simple as the feeder hasn't got time to play the cash market when his cattle are ready. He knows his costs and takes a small profit that is locked in.

Ask the guys up here that had their fats contracted at $1.08 pre BSE about the benefits of a contract.

Investors are always told by ethical brokers that you should never risk more than you can afford to lose. If you can afford to lose a margin on cattle then don't bother signing a contract. If you can't, sign at the first profit margin that keeps you in business.