Things to Know
If you’re entering into a grain contract this fall, here are some things to keep in mind…
- As a seller, you should always keep your copy of the contract and any other materials you are given. In addition, you should always keep your delivery tickets.
- You must get everything in writing. Even with grain delivered on free Deferred Pricing (DP) producers should ensure a contract is in place reflecting the free Deferred Pricing (DP).
- If you have any questions or concerns regarding the contract, reach out to your grain buyer immediately to resolve the issue.
Requirements for a Grain Purchase Contract are laid out in 824 Indiana Administrative Code 2-13-1.
Per that language, your grain contract should always include the following 10 things:
- Your name and the buyer’s name clearly identified along with your respective contact information
- The duration of the contract
- Clearly identified conditions of grain delivery
- The amount of grain and the type of grain delivered. Keep in mind only one type of grain should be included on the contract
- The grade of grain being purchased
- The method of pricing that will be utilized
- The delivery period of the grain
- The identified charges for which the seller is liable. It's important to note that this should also include any free Deferred Pricing (DP) bushels.
- The contract should include the notice required in IC 26-3-7-3(a) which reads "NOTICE - SELLER IS CAUTIONED THAT CONTRACTING FOR THE SALE AND DELIVERY OF GRAIN INVOLVES RISKS. THESE RISKS MAY INCLUDE FUTURE PAYMENTS BY YOU TO MAINTAIN THIS CONTRACT, A LOWER SALES PRICE, AND OTHER RISKS NOT SPECIFIED. INDIANA STATE LAW REQUIRES THAT AFTER JULY 1, 2022, ALL DEFERRED PRICED GRAIN MUST BE PRICED WITHIN THE CROP YEAR AS DEFINED BY IC 26-3-7-2(7). THIS CONTRACT MUST BE PRICED BY _(Insert Date)_. COVERAGE UNDER THE INDIANA GRAIN INDEMNITY PROGRAM IS FOR GRAIN THAT HAS BEEN DELIVERED TO A FIRST PURCHASER LICENSEE WITHIN THE 15 MONTHS BEFORE THE DATE OF FAILURE AND IS LIMITED TO 100% OF A LOSS FOR STORED GRAIN AND 80% OF A LOSS FOR OTHER COVERED CONTRACTS."
- The dates and signatures of both the seller and the buyer involved in the contract
This information does not, and is not intended to, constitute legal advice. Instead, all information, content and materials available on this site are for informational purposes only. Producers should contact their attorney to obtain advice with respect to any particular legal matter.