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Grain trade searches for smarter farmers

05 Jul, 2009 05:00 AM
SOUTH Australian graingrowers will have the chance to learn more about trade rules and dispute-resolution through Grain Trade Australia workshops later in the year.

GTA chief executive officer Geoff Honey said the organisation would be rolling out a "grower version" of the trade rules workshop.

"This will be based on program that has been run successfully in Western Australia and it will be designed for primary producers," he said.

Most grain companies operated with a standard GTA contract, which made very clear the rights and responsibility of both the buyer and seller.

All companies operating with the standard contract were listed on the GTA website.

Mr Honey said growers needed to understand both their obligations and rights.

"If you don't feel comfortable with a contract, particularly with forward contracts, which is a legal document to supply grain at some point in the future, you shouldn't enter into that contract," he said.

"You have to understand there are risks with any kind of forward selling. You also need to make sure you are dealing with an organisation you feel comfortable dealing with."

Growers would receive a booklet in the post called 'A Guide to Taking Out Contracts to Supply Grain'.

"Every grain grower in Australia will be receiving the booklet," Mr Honey said.

"This booklet puts in plain English what issues there are, in relation to contracting," he said.

Mr Honey said every contract entered into was a legal document and growers needed to understand what they were signing-up for.

"It's not a defence - that you didn't understand what was involved with the contract," he said. "If you're uncomfortable with forward sales, you can still go into national pools.

"You shouldn't be made to feel behind the eight-ball just because you aren't entering into forward contracts - you should only sign on for what you feel comfortable with."

• Details: www.nacma.com.au.

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