APAS pushing government for grain contract improvements

A well-written contract should spell out the risk and responsibilities of both parties involved. In agriculture, grain contracts spell out expectations, but the Agricultural Producers Association of Saskatchewan says current contracts don’t go far enough to manage farmers’ risk.

Following an estimated $60 million in farmer losses due to cancelled contracts with one grain buyer in 2022, Ian Boxall, president of APAS, says it’s time that contracts are more balanced and stop favouring the grain companies.

To tackle the issue, APAS and SaskCrops (which includes SaskOats, SaskWheat, SaskCanola, SaskFlax, Saskatchewan Pulse Growers, and SaskBarley) commissioned a Producer Contract Review undertaken by Mercantile Consulting Ventures Inc., which analyzed areas of concern with contracts and identified alternatives to help bring greater balance and predictability to grain contracts.

Boxall says APAS is looking for more standardization of contracts, more clarity and transparency on fees and pricing, and increased protection for the farmer. The ask now is for the government to task the Canadian Grain Commission with addressing the issue.

Hear the full interview with Ian Boxall, here: 

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