Grain contracts and the problems many farmers had during last year’s drought were discussed during a panel discussion at the Agricultural Producers Association of Saskatchewan (APAS) annual general meeting in Saskatoon on Friday.
APAS and the various producer grower commissions—SaskWheat, SaskBarley, SaskOats, SaskFlax and the Saskatchewan Pulse Growers—commissioned a report that was written by Marlene Boersch with Mercantile Consulting Venture. Her background in the grain trade assisted in the writing of the 35-page report which was released in July. Many farmers unable to meet fulfill their 2021 production contracts had to pay sizeable penalties, that would often differ from company to company.
The report indicated current grain purchase contracts are heavily tilted in favor of grain buyers, putting Saskatchewan farmers at a distinct disadvantage. The same report also found that only 46 per cent of Prairie grain farmers feel that they are being treated fairly by contracts.
The Mercantile report outlines several possible solutions to improve clarity and balance between farmers and grain buyers within the contracts. Marlene Boersch made the following comments at the APAS annual general meeting on December 9th..
Boersch also participated in a question and answer with APAS delegates. One question was about a standard grain contract that is used in Australia.
Another delegate question centered on what happens if grain companies are not responsive to a proposed standardized grain contract. That delegate went to ask about a government legislated solution.
The grain contract report prepared by Marlene Boersch with Mercantile Consulting Venture can be viewed here.
