Mercantile Consulting Venture "Producer Contract Review " suggests recommendations

Dec 12, 2022

2021 is a year many in the ag sector would like to forget, the widespread drought resulted in a loss in production that left many farmers having to pay significant penalties on unfulfilled grain contracts.

Marlene Boersch of Mercantile Consulting Venture has released a report looking at the issue around grain contracts.

Boersch was one of the presenters last week during the APAS AGM.

She says the current contracts are heavily tilted in favor of the buyer.

"So our recommendation is simplify the terms, concentrate very much on the contract fundamentals. Do away with a lot of the noise, tighten up the remedial actions and fees, to have more clarity and transparency."

She notes we also need to define both parties' responsibilities so that they are very clear.

Boersch looked at Australia's system where the contract actually states fixed tonnages but clearly outlines when the pricing happens and how damages are calculated if the contracts aren't fulfilled.

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Video: From Students to Solutions | On The Brink: Season 2, Episode 14

Ask Canada’s most decorated soybean breeder his favourite part of the job and he doesn’t name a single variety. He names the students.

Istvan Rajcan is a professor of soybean breeding and genetics in the Department of Plant Agriculture at the University of Guelph, where he has run the soybean breeding program for 28 and a half years. In that time he has developed 87 soybean cultivars, published 140 refereed papers and trained 51 graduate students. In 2025 he received the Public Sector Impact Award from the National Association for Plant Breeding.

He is also worried. In this episode he says Canada is at a crossroads, pointing to recent government cuts to plant breeding programs and to the facilities that support them. His prescription is structural. "Plant breeding funding formula has to be a long-term one," he says.

The formula he is defending is the public-private matching arrangement his program runs on. Private seed companies fund the work, provincial or federal money matches it, and the combined pool stretches each dollar further than either source could alone. At the National Association for Plant Breeding annual meeting in June, he says American public breeders were often surprised at how well that collaboration works in Canada.

He also describes how the people entering plant breeding have changed. His early graduate students came mostly from farms. More recently they include, in his words, "city kids who just became excited about genetics."

Topics covered:

Why public-private plant breeding funding in Canada needs a long-term

commitment rather than a larger one

How matching private seed company investment with provincial and federal

dollars multiplies research capacity

How the graduate student pipeline into plant breeding has shifted from

farm kids to city kids