While they may be seen as paperwork, grain contracts and their terms and conditions can carry significant legal and financial consequences. Understanding your obligations set out in your grain contract is as important as deciding what you will grow that year. They can be viewed as a spectrum with grain production contracts on one end and grain delivery contracts on the other.
While most grain contracts are standardized, any changes negotiated into the contract can affect where they fall on the spectrum. Knowing what each side of the spectrum looks like can help farmers understand what type of contract they may have.
In this month’s article, MLT Aikins lawyers Tristan Culham, Mark Roney and Josh Dubiel discuss each end of this spectrum while offering up some best practices for growers to consider going forward.
The lawyers in the MLT Aikins agribusiness and food group are trusted legal advisers to a wide range of food, beverage and agriculture clients all across Canada, including crop input companies, grain handling companies, feed companies, equipment manufacturers and dealers, trade organizations, marketing boards, co-operatives, insurers, food processors, co-packers, producers, retailers and distributors.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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