Last week, on CCG Hub, we explored farmer questions around contracts and delivery terms [read article]. This week we turn to contract cancellation and defaults. Knowing how defaults are treated is particularly important in years when crop quality and quantity is uncertain, and where significant price volatility exists in the market.
What happens if I fall short in meeting the contracted quality or quantity?
Grain buyers are only obligated to buy the quality and quantity stipulated in the contract. A schedule of discounts will likely apply to the lesser quality, and a financial penalty to shortages of quantity. Your grain buyer may be in the position to... (read more)