A production contract is a legal agreement between a producer and a contractor. It requires the producer to deliver a set amount of goods on a given date and requires the contractor to pay a set amount of money. This gives agricultural producers access to capital and wider markets, while protecting against market variations. It gives contractors a guarantee of supply and influence over the production process. Production contracts are governed by state and federal regulations, as are other contracts in the agricultural industry. An understanding of basic contract law is invaluable when running any business - especially an agricultural one, where a single contract can determine the success of a year's work.
If you would like to schedule a initial consultation contact an Iowa Ag attorney, representing clients in Waterloo, Iowa at the Dillon Law P.C. Give us a call at (563) 578-1850 or complete our inquiry form.