Mercantile Consulting Venture "Producer Contract Review " suggests recommendations

Dec 12, 2022

2021 is a year many in the ag sector would like to forget, the widespread drought resulted in a loss in production that left many farmers having to pay significant penalties on unfulfilled grain contracts.

Marlene Boersch of Mercantile Consulting Venture has released a report looking at the issue around grain contracts.

Boersch was one of the presenters last week during the APAS AGM.

She says the current contracts are heavily tilted in favor of the buyer.

"So our recommendation is simplify the terms, concentrate very much on the contract fundamentals. Do away with a lot of the noise, tighten up the remedial actions and fees, to have more clarity and transparency."

She notes we also need to define both parties' responsibilities so that they are very clear.

Boersch looked at Australia's system where the contract actually states fixed tonnages but clearly outlines when the pricing happens and how damages are calculated if the contracts aren't fulfilled.

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Video: Why Invest in Canada’s Seed Future? | On The Brink: Episode 3

Darcy Unger just invested millions to build a brand-new seed plant on his farm in Stonewall, Manitoba so when it’s time for his sons to take over, they have the tools they need to succeed.

Right now, 95% of the genetics they’ll be growing come from Canadian plant breeders.

That number matters.

When fusarium hit Western Canada in the late 90s, it was Canadian breeders who responded, because they understood Canadian conditions. That ability to react quickly to what’s happening on Canadian farms is exactly what’s at risk when breeding programs lose funding.

For farmers like Darcy, who have made generational investments based on the assumption that better genetics will keep coming, the stakes are direct and personal.

We’re on the brink of decisions that will shape our agricultural future for not only our generation, but also the ones to come.

What direction will we choose?

On The Brink is a year-long video series traveling across Canada to meet the researchers, breeders, farmers, seed companies, and policymakers shaping the future of Canadian plant breeding. Each week, a new story. Each story, a piece of the bigger picture.

Episode 3 is above. Follow Seed World Canada to catch every episode, and tell us: Do you think the next generation will have the tools they need to success when they takeover? How is the future going to look?