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1.  RE:Fertilizer Contracts - Please share your opinions

Posted 07-22-2011 10:20
    We have been doing customer contracts for a long time starting with LP and Fuel. We started doing grower fertilizer contracts about 5 years ago because we started selling fall applied ammonia in January of that year and realizing that our suppliers were very serious about the stipulations in the contracts they have us sign, we decided to protect ourselves in the same way knowing that if we couldn't take all of the ammonia by the end of December that we would pay the penalty or they would keep our prepay money and reprice the product if it went higher. 
    How else can you eliminate some of that risk if you don't have contracts and hold to them? 
    Kind of long winded here but it's a very important subject. Basically we mimicked the vendors contracts with a shorter version and our lawyer write it for us.

Duane Holicky
Agronomy Manager
Genesis Co-Op
Le Center MN
(507) 357-6868