Will WEA be looking at enforcing ‘retention of title’ to ensure growers get paid if an exporter goes out of business? Will there be a ‘retention of title’ clause in grain contracts?
Each contract is entered into on a commercial basis. Each grower needs to decide on the terms of a contract they are willing to accept. There are industry initiatives in place that are aimed at reducing, or preventing, the risk of payment default. For example, the National Agricultural Commodities and Marketing Association (NACMA) standard grain contract No 3 – Grower Contract Confirmation includes a ‘retention of title’ clause to ensure ownership doesn’t change until payment is made. More than 90 per cent of the grain contracts executed in Australia each year are by NACMA members. For more details contact NACMA by phone 02 9247 6408 or at www.nacma.com.au. There are also other selling options, such as CLEAR Commodities Pty Ltd, an online grain clearing, contracting and payment system, where any change of ownership or delivery of grain does not take place until payment is made. For more information: www.cleargrain.com.au.
Related Questions
- Will WEA be looking at enforcing ‘retention of title’ to ensure growers get paid if an exporter goes out of business? Will there be a ‘retention of title’ clause in grain contracts?
- What are the best practices to ensure that growers get the most benefit from HEADLINE? What application rate and water volumes are optimal?
- Amount paid by the prospective buyer will be an additional burden. How to ensure that the builder has paid the amount of ST collected?
