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To IFCA Retail Members: 

At the January 2009 IFCA convention, we featured a session on contracts for pre-paying inputs and the issues surrounding these contracts.  Because of the on-going interest in this issue, IFCA asked the legal firm who spoke at our convention to provide a guidance document covering some of the issues relative to input contracts.  The attorneys at the firm have substantial experience in the agribusiness industry and with commodity contracts. 

Please review the attached guidance document.  While this does not constitute legal advice it does seek to educate you about contractual relationships with regard to inputs and areas where particular attention should be focused. 

The law firm of Hasselberg, Williams, Grebe, Snodgrass and Birdsall located in Peoria prepared this document specifically for IFCA members.  They have also developed agronomy supply agreements that you may find helpful.  Please contact them directly at (309) 637-1400 and ask for Jim Grebe or William Streeter or contact Jean Payne at the IFCA if you have other questions or concerns. 

Your Association is also being proactive in discussing the increased prevalance and importance of supply agreements with your farmer customers.  The trend toward more of these agreements in our industry will likely stimulate requests from grower organizations for security agreements for pre-pay dollars.  IFCA staff and your Board of Directors have already discussed this issue as well as that of production money security interest with Illinois Farm Bureau and Illinois Corn Growers and we have an open and on-going dialogue with their leadership on this issue.