Citations Affected: IC 15-7.
Synopsis: Agricultural marketing and production contracts. Regulates
agricultural marketing and production contracts. Requires agricultural
marketing and production contracts to: (1) be in writing; (2) be
executed in good faith; (3) provide for resolution of complaints through
alternative dispute resolution; and (4) provide that Indiana law governs
and controls the contract and that venue for any actions concerning the
contract must lie in a county in Indiana where at least one party resides.
Specifies certain issues that must be addressed in agricultural
marketing and production contracts.
Effective: July 1, 2001.
January 17, 2001, read first time and referred to Committee on Agriculture, Natural
Resources and Rural Development.
February 27, 2001, amended, reported _ Do Pass.
March 5, 2001, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
correction, regarding the producer's production of the
processor's agricultural commodity; or
(2) two (2) producers regarding the production by one (1) producer of the other producer's agricultural commodity.
Sec. 5. A marketing or production contract must meet the following conditions:
(1) Be in writing.
(2) Be executed in good faith, with full disclosure of all relevant information by each party.
(3) Provide for resolution of disputes regarding the contract through alternative dispute resolution with the costs of the alternative dispute resolution paid equally by each party.
(4) Provide that:
(A) Indiana law governs and controls the contract; and
(B) venue for any actions concerning the contract must lie in a county in Indiana where at least one (1) party resides.
(5) Include the following terms of payment:
(A) The basis of payment.
(B) The payment method.
(C) The payment schedule.
(D) The effect of change in market price on contract price, if any.
(E) The penalty for late payment.
(F) The assignability of payments.
(G) The decision whether payment may be made copayable to the producer's lender.
(H) The responsibility for payment of the paying party's parent company, if the paying party is a subsidiary company.
Sec. 6. A producer may use for seed in subsequent crop years any grain grown from a commercially produced seed stock. Notwithstanding any other law, this right may not be waived by contract.