CROPPING

Grain contract guide published to help with post-harvest management

A new guide can help navigate grain marketing contracts.

Staff writer

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The publication, titled "Managing Risk in Grain Contracts - A Grower's Guide" is to assist growers when reviewing or looking to enter into grain contracts.

The guide covers off best contract review practices, some negotiating considerations and practical examples of how things can go awry.

The guide is intended to be a practical tool to assist growers in managing their risks in dealing with traders or buyers. It outlines how terms and conditions are central to a contract and some key points in relation to counter-party risk and growers rights in the situation of buyer insolvency.

A section of the guide, titled Negotiating Contracts, notes several important points including:

• When dealing with other parties, make intentions clear
• Obtain terms and conditions of the contract prior to any agreement, verbal or otherwise.
• Always keep a note of negotiations and/or confirm them in a short text or email and keep a copy.
• Review confirmations of trade as soon as possible. If they contain conditions not agreed to, raise this with the counterparty immediately. Use diarised records to support any claims.

Other topics covered inclde payments, insurance, dispute resolution and due diligence.

The guide can be downloaded here: https://bit.ly/3RuKOsy

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