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Selling or buying maize silage this season? Make sure you have a contract.

To safeguard the interests of both growers and the purchasers of maize silage, the Forage Trading Development Group (FTDG) have just released a standardised contract for maize silage. The contract is part of the on-going development of the Maize Forage Trading Code of Practice which was released in 2004.
The contract covers off key aspects of a sales and purchase agreement including purchase price, amount to be supplied and payment conditions as well as issues such as increases in fuel prices or inability to supply because of crop losses from floods or drought.
Mike Parker of the Foundation for Arable Research (FAR) developed the contract. "Getting the contract to where it is now was a huge undertaking because so many parties had to be consulted" says Mr Parker. The final version was approved by lawyers in late September. With the increasing interest in growing maize silage, Andrea Pearson Research Coordinator for FAR, is encouraging all growers to make sure they have a contract with their buyer. "Growing maize silage is a major financial commitment so growers need to be sure they have a buyer for it. Unsold crops can be carried through for grain, but silage growers should be aware there is limited capacity to dry and store maize grain. We don't want growers caught out with a crop they cant sell."
The Forage Trading Development Group is made up of members of the maize silage industry including contractors, seed companies, dry matter testing laboratories, Foundation for Arable Research (FAR) and DairyNZ. The Maize Forage Purchase Contract and the Good Practice Guide for the trading of maize silage can be downloaded from FAR's website (www.far.org.nz) or contact the FAR office (03 325 6353) for a copy.
Click to view PDF...

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