APAS releases initial results of grain contract defaults due to drought

APAS has released initial results of a survey of Saskatchewan farmers who faced contract default on grain deliveries this year due to drought.

200 farmers have responded, with some facing bankruptcy due to the drought and contract shortfalls.

The survey found 75 percent of respondents could not fulfill their grain contracts due to drought.

The farmers are paying penalties and fees of 20 thousand to 300 thousand dollars to grain companies.

Interest charges were as high as 19 percent.

Many farmers said they will not be working with the same company in the future.

The survey, between the end of August to end of November, found a need for a standard contract resolution.

APAS is advising farmers to seek legal advice if needed and reach out to the farm stress line if necessary.

The survey found smaller companies were more aggressive with farmers.

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