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. §§ 181-229b
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
Rules of Practice Governing Formal Adjudicatory Proceedings, 7 C.F.R. §§ 1.130-1.151
Packers and Stockyards Act Regulations, 9 C.F.R. Parts 200-206
Federal Register Rules Open for Comment
Case Law
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
Agricultural Law Bibliography
Introduction | Keyword Search | Browse Categories
Legal publications on Production Contracts:
Animals – Animal Rights
Bankruptcy
Corporate Farming (Restrictions on Corporate Farming/Family Farm Preservation)
Farmer-Processor Bargaining – Production Contracts
Land Use Regulation
Livestock and Packers & Stockyards
Center Research Publications
Farmer’s Legal Guide to Production Contracts (Hamilton, 1995)
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):
Reference Resources
Economic Research Service (ERS)
Briefing Room: Farm Policy – Glossary
Agricultural Contracting Update: Contracts in 2005 (MacDonald and Korb, 2008)
Agricultural Contracting Update: Contracts in 2003 (MacDonald and Korb, 2006)
Did the Mandatory Requirement Aid the Market? Impact of the Livestock Mandatory Reporting Act (Perry et al., 2005)
Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities (MacDonald et al., 2004)
Contracting in Tobacco? Contracts Revisited (Dimitri, 2003)
Broiler Farms’ Organization, Management, and Performance (Perry et al., 1999)
Farmers’ Use of Marketing and Production Contracts (1997)
Grain Inspection, Packers and Stockyards Administration (GIPSA)
Swine Contract Library
Livestock and Poultry Growing Contracts
Swine Contract Provisions of the 2002 Farm Bill
Livestock, Meat and Poultry: Rights Under the P&S Act
Live Poultry Growers’ and Sellers’ Rights
Contracting in Agriculture: Making the Right Decision (Information for Farmers from USDA) (2008)
Other Federal Resources
Contracting in Agriculture: Making the Right Decision (Agricultural Marketing Service, AMS)
Publications
Contract Commercial Egg Production (NC St. U.)
Agricultural Production Contracts (Kunkel, Peterson, and Mitchell, 2009)
Hushed Up: Confidentiality Clauses in Organic Milk Contracts (FLAG, 2008)
Farmer Guide to Peanut Contracts (RAFI-USA, 2007)
The Dilemma of Contracting: Risk Management or Risky Business? (FLAG CLE seminar, 2006)
An Introduction to Agricultural Production and Marketing Contracts (Holman et al., U. NE-Lincoln, 2006)
Issues To Consider Related to Tobacco Contracts (RAFI-USA, 2006)
Agricultural Production Contract Code & Guidelines (IL Attorney General, updated 2005)
Cooperatives and Contracting in Agriculture: The Case of West Liberty Foods (Ginder et al., IA State U., 2005)
Questions to Ask Before Signing a Poultry Contract (RAFI-USA, 2005)
Issue Report: Production Contracts (Farm Foundation, 2004)
Contract Poultry Growers Have Rights under Federal Law (FLAG, 2004)
Livestock Production Contracts: Risks for Family Farmers (Moeller, FLAG, 2004)
Contract Production and Market Coordination for Speciality Crops: The Case of Indiana (Fulton et al., Farm Foundation, 2003)
Your Poultry Contract is Cut Off Due To Plant Closing: What Should You Do? (FLAG/RAFI, 2003)
Contracting in Tobacco (Council of State Governments, Hull, 2001)
Assessing the Impact of Integrator Practices on Contract Poultry Growers (FLAG, 2001)
Contracts and Agreements for Custom Dairy Heifer Growing (Karszes and Cady, 2000)
Twelve Basic Rules of Contracting (Harl, 1995)
A Farmer’s Guide to Production Contracts in Saskatchewan (Zawada)
FLAG Publications on Contract Farming
Additional Resources
Production Contracts Posts (United States Agricultural & Food Law and Policy Blog)
Agricultural Contracts (IA Attorney General)
Model Producer Protection Act (IA Attorney General)
Caution on Contracts (IA Attorney General)
Livestock Production Contract Checklist (IA Attorney General)
Grain Production Contract Checklist (IA Attorney General)
Contract Agriculture Reform (RAFI-USA)
Agricultural Contracting (U. MO)
Checklist for Grain Production Contracts (MI Farm Bureau)