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Prompt A production contract is a legal agreement between a farmer (grower) and another company to produce a specific type, quantity, and quality of an agricultural commodity

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Prompt

A production contract is a legal agreement between a farmer (grower) and another company to produce a specific type, quantity, and quality of an agricultural commodity.

The company owns the commodity (animals, crop), provides animals, feed, medicine, and other inputs.
The grower raises the animal/crop and provides land, facilities, and labor.

Some typical poultry production contract provisions are listed below. Discuss why it may or may not be a good idea from the farmer’s perspective to agree to that provision. Just try a few each, and try ones that others have not done.

• Prohibition against keeping other fowl on property in a poultry production contract.
• May not use supplies not provided by company.
• Company’s right to access to grower’s facility.
• Company’s right to take over or remove birds.
• No modifications unless in writing.
• Assignment of contract only with company approval (so a different person can take over for the grower).
• Grower bears risk of catastrophe.
• Timing, frequency, and number of flocks determined by company.

Confidentiality provisions: Grower may not discuss the contract terms with anyone else.

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