Production Contracts
Overview
Agricultural production contracts are agreements between producers and contractors, typically agricultural commodity processors, that detail an arrangement for raising agricultural commodities. These contracts usually identify the production practices to be used, identify the party responsible for supplying the required resources, and specify the quantity, quality, and method of payment for the product. Farmers and ranchers utilize production contracts as a tool to manage the risks inherent in agricultural production, and agribusinesses employ production contracts to manage risk and to control expenditures. The legal implications of production contracts are unique to each jurisdiction because the law of each state governs their interpretation. In addition, variations in terms and language contained in individual production contracts make each one distinct.
Read the full overview
Note: Recently added resources are posted at the top of the applicable sections.
Major Statutes
Farm Security and Rural Investment Act of 2002, Pub. L. No. 107-171 § 10503, 116 Stat. 134, 510
(codified at 7 U.S.C. § 229b)
Perishable Agricultural Commodities Act, 7 U.S.C. §§ 499a-499t
Packers and Stockyards Act, 7 U.S.C. §§ 181-229
Agricultural Fair Practices Act, 7 U.S.C. §§ 2301-2306
Producer Protection Act (state legislation model)
Regulations
Perishable Agricultural Commodities Act Regulations, 7 C.F.R. §§ 46.1-46.49
Rules of Practice for Reparation Proceedings, 7 C.F.R. §§ 47.1-47.49
Packers and Stockyards Act Regulations, 9 C.F.R. Parts 200-206
Rules of Practice Governing Formal Adjudicatory Proceedings, 7 C.F.R. §§ 1.130-1.151
Federal Register Rules Open for Comment
Center published Federal Register Digest
Case Law
Note: Recently summarized cases are listed and linked in Recent Postings.
Case Law Index for Production Contracts
Administrative Law Decisions
USDA Office of the Administrative Law Judges
USDA National Appeals Division
Center published USDA Judicial Officer's Decisions
Center Research Publications
Research Articles
State Regulation of Production Contracts (Peck, 2006)
The Farmer's Legal Guide to Producer Marketing Associations (O'Brien, Hamilton & Luedeman, 2006)
Congressional Research Service Reports
CRS Subject(s):
Animal Agriculture
Reference Resources
USDA
Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities (MacDonald et al., ERS, 2004)
Contracting in Agriculture: Making the Right Decision (Agricultural Marketing Service)
Briefing Room: Farm Structure - Agricultural Contracting (Economic Research Service - ERS)
Briefing Room: Farm Structure - Glossary (ERS)
Contracting Changes How Farms Do Business (ERS, 2000)
Farmers' Use of Marketing and Production Contracts (ERS, 1997)
Swine Contract Library (Grain Inspection, Packers and Stockyards Administration - GIPSA)
Livestock and Poultry Growing Contracts (GIPSA)
Publications
Hushed Up: Confidentiality Clauses in Organic Milk Contracts (FLAG, 2008)
Competition and Trade Practice in Agriculture: Litigation and Legislation (FLAG, 2006)
The Dilemma of Contracting: Risk Management or Risky Business? (FLAG CLE seminar, 2006)
An Introduction to Agricultural Production and Marketing Contracts (Holman et al., 2006, U. NE-Lincoln)
Agricultural Production Contract Code & Guidelines (IL Attorney General, updated 2005)
Issue Report: Production Contracts (Farm Foundation, 2004)
Contracting in Tobacco (Council of State Governments, Hull, 2001)
FLAG Publications on Contract Farming
Agricultural Production Contracts (Kunkel and Larison, 1998)
Additional Resources
Agricultural Contracts (IA Attorney General)
Model Producer Protection Act (IA Attorney General)
