Attorney General's News Release

May 19, 2000

Nixon, Farm Bureau unveil contract checklists to help farmers

Jefferson City, Mo. — Missouri farmers will be able to make better-informed decisions concerning grain and livestock production contracts by using two checklists unveiled today by Attorney General Jay Nixon and Missouri Farm Bureau President Charles Kruse.

A task force consisting of farmers and staff from the Missouri Farm Bureau and the Attorney General's Office developed the checklists of questions for farmers to consider prior to entering into production contracts. These contracts are binding agreements between farmers and purchasers of grain, livestock and other farm commodities.

"Family farmers are facing many challenges today from low prices, increased production costs and the growth of corporate agriculture," Nixon said. "We must do everything we can to help level the playing field for farmers. With the information in the checklists, farmers will be in a more advantageous position."

The checklists — one for grain and the other for livestock — include a basic explanation of production contracts; a glossary of common words and terms used in such contracts; and questions the producer should ask about such areas as facility requirements, payment and operational and legal issues. The checklists also advise farmers to have contract documents reviewed by an attorney.

"While production contracts do have the benefit of removing some of the risk of farming, they are not for everyone, and the development of these checklists is neither for the purpose of advocating nor discouraging farmers from entering into such contracts," Kruse said. "But farmers do need to be armed with the right questions to ask to make informed decisions."

The two checklists are available at no cost to Missouri farmers through the Missouri Farm Bureau offices in each of the state's 114 counties.

Kruse and Nixon also acknowledged the contributions of the Missouri Department of Agriculture, the Missouri Pork Producers Association, and the University of Missouri Agriculture Economics Department in development of the checklists.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818