17.90 DEFINITIONS. Subdivision 1. Applicability. The definitions in this section apply to sections 17.90 to 17.98. Subd. 1a. Agricultural contract. “Agricultural contract” means any written contract between a contractor and a producer, but does not include a contract between a grain buyer licensed under section 223.17, subdivision 1, who purchases grain from a producer as […]
17.91 REQUIRED LANGUAGE. Subdivision 1. Mediation; arbitration. A contract for an agricultural commodity between a contractor and a producer must contain language providing for resolution of contract disputes by either mediation or arbitration. If there is a contract dispute, either party may make a written request to the commissioner for mediation or arbitration services as […]
17.92 RECAPTURE OF CAPITAL INVESTMENT REQUIRED BY AN AGRICULTURAL CONTRACT. Subdivision 1. Notice and damages to be paid. A contractor must not terminate or cancel a contract that requires a producer of agricultural commodities to make a capital investment in buildings or equipment that cost $100,000 or more and have a useful life of five […]
17.93 PARENT COMPANY RESPONSIBILITY FOR CONTRACTS OF SUBSIDIARIES. Subdivision 1. Licensing. If a contractor is required to obtain a license to purchase agricultural commodities, the licensing authority may require the parent company of a licensee subsidiary to guarantee payment or contract performance as a condition of licensing. Subd. 2. Parent company liability. If an agricultural […]
17.94 IMPLIED PROMISE OF GOOD FAITH. There is an implied promise of good faith as defined in section 336.1-201(b)(20), by all parties in all agricultural contracts. In an action to recover damages, if the court finds that there has been a violation of this provision, damages, court costs, and attorney fees may be recovered. History: […]
17.941 PRODUCER’S RIGHT TO CANCEL. A producer may cancel an agricultural contract by mailing a written cancellation notice to the contractor within three business days after the producer receives a copy of the signed contract, or before a later cancellation deadline if a later deadline is specified in the contract. The producer’s right to cancel, […]
17.942 COVER SHEET REQUIREMENTS. Subdivision 1. Mandatory cover page. An agricultural contract entered into or substantively amended after January 1, 2001, must contain as the first page, or first page of text if it is preceded by a title page or pages, a cover sheet as provided in this section. Subd. 2. Requirements. The cover […]
17.943 CONTRACT FORMAT. Subdivision 1. Readability. An agricultural contract must be in legible type, appropriately divided and captioned by its various sections, and written in clear and coherent language using words and grammar that are understandable by a person of average intelligence, education, and experience within the industry. Subd. 2. Exceptions. Subdivision 1 does not […]
17.944 REVIEW BY COMMISSIONER. Subdivision 1. Agricultural contracts. For purposes of this section and section 17.943, “agricultural contract” includes, where applicable, the cover sheet as defined in section 17.942, and material risk disclosure statement required by section 17.91, subdivision 2. Subd. 2. Process of review. A contractor may submit an agricultural contract to the commissioner […]
17.9441 LIMITS ON REMEDIES. Subdivision 1. Penalties. In a proceeding in which civil penalties are claimed from a party for a violation of section 17.943, it is a defense to the claim that the party made a good faith and reasonable effort to comply with section 17.943. Subd. 2. Attorney’s fees. A party who has […]
17.9442 APPLICABILITY OF CONTRACT REQUIREMENTS. The requirements for the written disclosure of material risks under section 17.91, subdivision 2; the three-day review period under section 17.941; the cover sheet requirement under section 17.942; and the contract readability requirements under section 17.943, subdivision 1, do not apply to contracts which provide for: (1) the sale and […]
17.9443 WAIVER OF CONTRACT PROVISIONS IS VOID. Any provision of an agricultural contract which waives or attempts to waive any provision of sections 17.90 to 17.97 is void. History: 2000 c 470 s 11
17.945 RULES. The commissioner may adopt rules to implement sections 17.90 to 17.98, including the prohibition of specific trade practices. History: 1990 c 517 s 6
17.95 DEPARTMENT OF AGRICULTURE OMBUDSMAN. A position is created in the Department of Agriculture to provide information, investigate complaints arising from this chapter, and provide or facilitate dispute resolutions. History: 1990 c 517 s 7
17.97 AGRICULTURAL INPUT PREPAYMENTS. If a producer makes a prepayment for agricultural production inputs that include but are not limited to seed, feed, fertilizer, pesticides, or fuel for future delivery, the producer may demand a letter of credit or bank guarantee from the provider of the inputs to ensure reimbursement if delivery does not occur. […]
17.98 DAIRY MARKETING CONTRACTS EXCEPTED. Dairy marketing agreements between producers and purchasers of milk are not contracts for purposes of sections 17.90 to 17.98. History: 1990 c 517 s 9
