Does this mean there is a price floor at $1.40 even when the market price is, say, $1, and then there is also a price 5 cents higher when the market price is above $1.40 (so say market price was $2.00 — it would be sold for $2.05)?

Or is it that the 5 cent premium when the market price is over $1.40 basically makes up for the profits growers aren’t making when the market price drops below $1.40? A little confused on the wording.