By Alice McFarlane

A new report says grain contracts favour buyers

Jul 11, 2022 | 12:17 PM

MELFORT, Sask. – A report commissioned by Saskatchewan farm groups said grain purchase contracts, in many cases, favour grain buyers and this has farmers at a disadvantage.

Agricultural Producers Association of Saskatchewan (APAS) and Saskatchewan crop organizations (SaskCrops) hired Mercantile Consulting Venture Inc. as a wider-scale response to concerns around the transparency of contract terms and conditions between farmers and grain buyers.

APAS President Ian Boxall said the report found only 46 per cent of Prairie grain farmers feel that they are being treated fairly. These concerns were heightened by the events of the 2021 growing season and were raised throughout the groups’ annual general meetings in 2021-2022.

“Our groups had been working on this file since last year, as it’s top of mind for many of our grain farmers these days,” Boxall said. “We commissioned the report in order to quantify and substantiate the concerns we were hearing from our member bases.”

The report outlined possible solutions to improve clarity and balance between farmers and grain buyers within the contracts. Boxall said the report suggested improving grain contracts would benefit not only farmers but also grain companies and the entire industry.

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“We aren’t looking to reallocate production risk from farmers to grain companies, but instead to clearly define contract terms and conditions so everyone understands their responsibilities if they are unable to fulfil the contract,” Boxall said.

SaskCrops and APAS will be initiating discussions with stakeholders and government bodies. Boxall said this matter will need the cooperation and goodwill of farmers and grain buyers.

“Improvements to grain contracts remain a top priority for our organizations and we are committed to working on this issue on behalf of Saskatchewan farmers,” he said.

SaskCrops represent barley, canola, flax, oats, pulse, and wheat growers.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW