2013 Oregon Revised Statutes
Volume : 13 - Water Resources, Agriculture and Food
Chapter 576 - Agricultural Marketing Generally
Section 576.718 - Seed production contract terms.

(1) The following terms apply to seed production contracts:

(a) If the contract does not settle the price of the agricultural seed, the contract is enforceable and the price shall be determined as described in ORS 72.3050 (1) to (3).

(b) Except as provided in ORS 576.721 (1) or (3), payment to the producer is due no later than the earliest of the following:

(A) The dates specified in the contract.

(B) Thirty days after delivery of the seed.

(C) May 1 of the calendar year following the harvesting of the seed.

(c) Unless expressly provided otherwise in a seed production contract that is authenticated by the producer and seed dealer prior to the producer planting the agricultural seed, the risk of loss and the responsibility for the payment of storage fees transfer from the producer to the seed dealer upon the earlier of:

(A) The delivery of the seed to the seed dealer pursuant to a notice from the seed dealer; or

(B) The delivery to the seed dealer of test results establishing that the seed meets quality standards set forth in the contract.

(d) Unless expressly provided otherwise in a seed production contract that is authenticated by the producer and seed dealer prior to the producer planting the agricultural seed, the minimum period for an initial contract is two years. This paragraph does not establish a minimum period for an extension or renewal that follows an initial contract period.

(2) It is an implied condition of any price or payment requirement described in subsection (1) of this section that the producer is performing, or has completed performance, in accordance with the seed production contract and has not otherwise breached the contract.

(3) Except as provided in subsection (5) of this section, a seed production contract described in this section may contain any additional terms agreed to by the parties.

(4) If a seed production contract is extended or renewed, for the extension or renewal period the parties may:

(a) Subject to paragraph (b) of this subsection, continue the terms of the original contract or agree to new or different contract terms; and

(b) Agree to payment due date terms as provided under this section or under ORS 576.721 (3).

(5) A seed production contract may not:

(a) Provide for exclusive venue or jurisdiction in another state;

(b) Provide for the terms of the contract to be interpreted under the laws of another state;

(c) Waive the application of ORS 576.715 to 576.744 to the contract; or

(d) Authorize a unilateral material modification of the contract.

(6) Subject to ORS 72.2010, subsections (1) and (5) of this section also apply to a nonwritten agreement for the production of agricultural seed.

(7) A term in a seed production contract that conflicts with subsection (1) or (5) of this section is void as a matter of public policy. [2011 c.356 §2]

Note: See note under 576.715.