The report, written by Mercantile Consulting Venture Inc., was commissioned by the Sask Crops group and the Agricultural Producers Association of Saskatchewan.
It was done in response to concerns raised by farmers about grain contracts during last year’s severe drought across Western Canada. Many producers were unable to fulfill their production requirements and were forced to pay stiff penalties. One of the complaints was that there are no standard grain contracts and there are variations between the different grain companies.
“The report suggests, quite strongly, that improving grain contracts for Saskatchewan producers will benefit not only farmers, but also grain companies and the entire industry,” said Ian Boxall, president of the Agricultural Producers Association of Saskatchewan.
“We are not 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 fulfill the contract”
APAS and the Sask Crops group (SaskWheat, SaskCanola, SaskBarley, SaskOats, SaskFlax and the Saskatchewan Pulse Growers) will use the report as a base to begin discussions with willing grain companies.
You can listen to Boxall’s comments in this July 11th story aired on CJWW Radio.