Contracts

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Before You Sign on the Dotted Line...Questions for Farmers to Ask Before Entering Into a Direct Marketing Agreement
Jill Krueger, Farmers’ Legal Action Group, Inc.
Many farmers who have shifted to direct marketing their products pride themselves on their personal relationships with their buyers. These personal relationships are a real strength of the direct marketing movement. At the same time, as farmers increase the scope and sophistication of their direct marketing efforts, they may find that agreeing on a price and quantity with the buyer and shaking hands on the deal does not do enough to anticipate all of the questions that may arise later. The buyer may offer a written contract to the farmer, or the farmer may want to offer a written contract to the buyer.
These materials help identify the questions that commonly arise when farmers enter into partnerships with buyers—whether they be wholesalers, cooperatives, restaurants, grocery stores and food co-ops, florists, or other farmers. Many farmers state that having a written contract gives them a greater sense of stability, and enables them to produce a business plan with greater confidence of its accuracy.
6 pages. 64 kb PDF