ARA announces ‘model fertilizer contract’

Washington-The Agricultural Retailers Association (ARA) on Nov. 19 unveiled a “model fertilizer contract” that it said was developed by an ARA-assembled Fertilizer Contract Task Force in response to “the extreme volatility that has occurred with fertilizer prices and supplies over the past several years.” ARA said the contract could be used throughout all segments of the distribution chain, from manufacturers to distributors, retailers, and farmers. “A model fertilizer contract that can be utilized by industry on a voluntary basis should help companies better manage their risks and provide consistent terms and conditions when dealing with their suppliers or customers,” ARA said. The ARA model contract will be a discussion topic at ARA’s upcoming 2009 Conference and Expo, scheduled for Dec. 1-3 at the Sawgrass Marriott Golf Spa & Resort in Ponte Vedra Beach, Fla. ARA said its board of directors is scheduled to review the contract on Nov. 30, and a motion will likely be offered seeking board approval of the document for voluntary use by the industry. On Dec. 2 there will be a discussion of the contract at the ARA Conference during a “Selling with Contracts” panel discussion. ARA said the session will focus on formal buyer/seller contractual agreements and using arbitration to settle disagreements. A PDF of the draft version of the ARA model contract can be viewed at http://greenmarkets.pf.com/ARA.pdf.