Grain Sales Contracts
The W.A. Grains Group (Inc) would like to send a timely reminder to growers as to their rights and obligations when signing forward grain sales contracts. With many areas of W.A. experiencing good crop conditions and with reasonable grain prices being offered, the W.A. Grains Group Chairman Mr Doug Clarke said as there was still some 3 months before harvest and growers wishing to sell grain forward should be fully aware of the contractual terms and conditions.
Mr Clarke said “When discussing a forward contract, growers should be fully aware of all aspects of the contract. If a grower was unsure he should discuss any uncertainties with the buyer as to his contractual obligations”. Most grain contracts are written under the “Grain Trade Australia’s” Trade Rules which include a Disputes and Resolution mechanism. Mr Clarke reminded growers to consult the booklet titled “A guide to taking out contracts to supply grain” which was sent growers some 12 months ago. This booklet gave concise step by step procedures as to taking out grain contracts.
Mr Clarke went on to say “With many grain growers facing difficult financial times it would be a shame if a dispute arose simply by not being aware of the terms, conditions and obligations of both the buyer and the seller.