Grain production contracts are a sensitive subject for farmers in severe drought areas this year.
Even producers signing modest production contracts ended up paying the difference when they did not grow enough crop to meet terms of the deal.
Rising grain prices have made those settlements even more expensive and there does not appear to be a standard way of dealing with the grain contracts.
Many producers responding to the survey mentioned concerns about how the buyout options were calculated.
“The numbers vary from company to company,” said Todd Lewis, president of the Agricultural Producers Association of Saskatchewan.
He notes barley and oat crop contracts are difficult to put a price on for a buyout compared to canola, which has a very active futures contract.
APAS hopes a standardized contract can be developed in time for the next growing season.
“I think farmers are looking for a contract that has a set number of clauses that producers understand with simpler language and is much more transparent,” Lewis said.
A final report on the APAS survey will be released by the end of the year.
{CJWW}
