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Grape growers: Understand contract before signing

China Agriculture Report By CnAgriChina Agriculture Report Print

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They estimate that more than 95 percent of the California wine grape supply is contracted on template agreements written on behalf of the winery, mostly by attorneys. In buyer-grower contract negotiations, some wineries will change the contract to accommodate grower concerns; others may not.

Some contracts are written by grower representative organizations, including AGG.

“Sometimes growers see the price on top, the length of the term, and then sign the contract,” DiBuduo said. “In doing so, growers sometimes give up their rights.”

Producer’s lien

Dale Stern, an attorney with Downey Brand in Sacramento, works with agricultural clients on contract issues. He said one of the newer efforts is to get growers to waive their rights to a producer’s lien. This is a legal mechanism created by the California Legislature that Stern says protects producers if a processor fails to pay the producer.

That lien is important, Stern says. It puts the producer near the front of the line in getting paid should a processor file bankruptcy or otherwise fail to pay a grower.

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