Wednesday, March 14, 2018

Keeping Up With Lawyers and Business: Contract Farming

Modern Farmer reports that SBA's inspector general has determined that poultry farmers operating on a contract with a processor (which 97 percent do) don't qualify as a "small business".

Reminds me of back in the day when ASCS determined that growers of seed corn, which operate under a contract with seed companies, didn't qualify as "producers" because they didn't share in the risk of producing the crop.  That determination was speedily reversed by pressure from Congress (not sure they put it in legislation or appropriations, but reversed it was).

The bottom line is people don't like risk, so for many many years people have been planning and scheming on ways to minimize it.

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