Sample Farmer/Buyer Agreement

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Last updated: October 3, 2023 Authors: AJP Tags: Selling Pricing
  1. Buyer will make agreements with growers to purchase a crop, which will be either a percent or estimated full amount of the co-op’s needs. In addition to the fresh produce department, potential also may be available for sales in the co-op’s deli and for frozen or canned food products. The co-op encourages farmers to initiate dialogue if they see such potential, and the co-op will do the same.
  2. The grower agrees to supply the co-op with the agreed upon crop and will not abandon the co-op for other sales opportunities at the time the crop is ready.
  3. Buyer’s agreement to buy is a commitment to not buy the same product from more than one source at a time while product is available from the primary grower and of acceptable quality and quantity to meet customer demands. Exceptions are as follows: a. The co-op is committed to providing its customers with local organic produce whenever possible. If a local organic producer is not identified at the time Buyer is reaching its grower agreements, an agreement may be reached with another organic supplier. Buyer reserves the right to also bring in local organic product if it is available at a later date, as well as organic product from outside the region.
  4. Buyer places a high value on its long-term relationships with dependable suppliers, and will not lightly dissolve such relationships from year to year. In fact, the co-op sees those relationships as key to its success in offering customers a reliable source of local organic produce. Buyer also wants to encourage the development of more organic farms in the region, as one of its other goals is to help the market expand, encourage the resurgence of small family farming and spur more widespread ecological care of the land.
  5. A price is agreed upon for each growing season. We consider the following factors in determining the wholesale price paid. a. Retail price of competitors in the area for similar product. b. Retail price of product at local Farmers Markets and Farm Stands(within 5% of market.) c. Once a price is set for season the price will not change unless the grower has an excess of crop and would like to do a special run. Other than that the cost of goods will stay the same. It will not be influenced by any commercial market price.
  6. The producer is expected to immediately contact the co-op when any obstacles or potential obstacles are known, such as crop damage or disease that will reduce the agreed upon volume of crop or quality of the crop. This will allow the co-op to locate additional suppliers to fill volume gaps. The co-op will create a list of local suppliers who would like to be called to fill gaps if a primary supplier is unable, even temporarily, to provide the co-op with all its produce needs.
  7. When the product is presented to the co-op it is expected to be clean and first quality, under guidelines discussed in advance with the produce department. If this is not the case, the order may be refused or further adjustment of the price may be negotiated.
  8. The co-op is committed to public education regarding the benefits of organic and local agriculture. It is developing the skills and resources to fulfill this commitment, but also hopes that farmers will supply insight, information and expertise. Ideas include farmer profiles (farm) in the store; crop updates to show consumers the seasonal challenges and victories experienced by the farmers who produce their food; educational materials regarding health, ecological and cultural issues relating to our food supply; fact sheets to explain and put into context surface blemishes that sometimes occur with organic crops; recipes that use fruits and vegetables when they are in season; Farm Tours for members; and Meet the Farmers days at the store.

Production and Marketing Agreement #

This production and marketing agreement was worked out with _________ (name) of _______ Farm of __________ (location) and __________ (name) of __________ (food retailer).

The __________ (food retailer) agrees to purchase ____________ (produce item) from _________ Farm for the ______ (year) growing season. Target price is $______ for ___________ (quantity, how packaged) ________ (shipping or delivery option)

  1. Standards:
    1. ________ Farm agrees to maintain and active organic certification on all items they sell to the ________ (retailer). ________ (retailer) encourages __________ (farm) to submit certification paperwork on or before _______ (date) so that the certification can be at the _________ (food retailer) on or around __________ (date).
    2. __________ (FARM) agrees to pack in containers that are acceptable to the organic industry and ___________ (retailer). Containers will contain a __________ (FARM) label on it complete with lot number.
    3. __________ (FARM) will deliver to ___________ (retailer) number one quality produce in containers specified above.
    4. __________ (FARM) will not knowingly use genetically engineered organisms or food irradiation as part of their production or handling.
    5. __________ (FARM) will communicate via fax about projected availability 10 days in advance. This will ensure a smooth flow of __________ (FARM) commodities to ___________ (retailer).
    1. __________ (FARM) will provide ___________ (retailer) with point of purchase materials, such as __________ (FARM) product stickers and shelf signs.
    2. __________ (FARM) will provide 10 farm photos with their negatives (if requested) and will allow ___________ (retailer) to reproduce, enlarge and use them as a consumer education project.
    3. __________ (FARM) will provide personnel to assist in four 6-hour demonstrations to be mutually agreed upon. This will enhance sales of __________ (FARM) product through greater name recognition.
    4. __________ (FARM) agrees to open their farm for a tour that will be set up by the Produce Manager. __________ (FARM) reserves the right to set terms and conditions of the tour.

    The undersigned have agreed to the above written terms of this agreement.