What is producer protection legislation and how does it affect the seed industry?

American Seed Trade Association (ASTA) member companies and state associations will discuss several state and national initiatives in 2000-01 on this issue and look ahead to 2002 in a Producer Protection Workshop on Thurs., Dec. 6 from 1 to 3 PM. It will be part of ASTA’s Corn & Sorghum and Soybean Seed Research Conferences that day at the Hyatt Regency Chicago in Room Crystal A.

Producer protection initiatives affect all seed professionals and their ability to work with growers and customers. While none are law at present, they could become so in specific states or nationwide, which would be detrimental to seed business. Briefly, in state model and proposed federal legislation, the Producer Protection Act seeks to:

• Require contracts to be in plain language and clearly disclose material risks.
• Provide contract producers with a three-day right to review production contracts.
• Prohibit confidentiality clauses.
• Provide producers with a first-priority lien (claim on the property of another as security) for payments due under a contract in case the contractor company should go out of business.
• Protect producers from having contracts terminated capriciously or as a form of retribution if farmers already have made a sizeable capital investment required by the contracts.
• Make it an unfair practice for processors to retaliate or discriminate against producers who exercise rights, including the right to join producer organizations.

Some of these provisions do not apply to the seed industry, calling into question already established rights and fair practices employed by seed contractors and producers. Other provisions could negatively impact both contractors and producers, such as prohibiting confidentiality clauses and tournament compensation. Ultimately, producer protection legislation would adversely affect the seed industry, which has benefited from a long history of successful contracting.

Speakers will discuss how the seed industry can maintain its positive business climate that fairly generates options and opportunities for individual seed producers through contracts. These contracts should continue to allow producers to be rewarded for hard work, success and investment in producing value-added commodities, while noting fair and reasonable risks and obligations in contracts. Speakers will include Jewel DeBonis of Lewis & Kappes Governmental Relations Group LLC, Sarah Fiedler-Thorn of Pioneer Hi-Bred Intl., John Widick and Richard Denhart of the Illinois Seed Trade Association, Jake Secor of Dow AgroSciences, and other industry representatives.

Founded in 1883, ASTA, located in Alexandria, Vir., is one of the oldest trade organizations in the United States. Its membership consists of about 850 companies involved in seed production and distribution, plant breeding, and related industries in North America. As an authority on plant germplasm, ASTA advocates science and policy issues of industry importance. Its mission is to enhance the development and free movement of quality seed worldwide.