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AMI Voices Opposition to Illinois Legislature’s Bill Regulating Contracts

Thursday, May 24, 2001

AMI President J. Patrick Boyle wrote key Illinois state legislators to voice AMI’s opposition to a bill (HB 0524) which would further regulate agribusiness contracts and "have significant, negative legal and business implications."
A growing number of transactions between agribusinesses and farmers involve contracts which provide a degree of stability for both buyers and sellers. Currently, contracts between agribusinesses and farmers are developed on a case-by-case basis, guided by the Uniform Commercial Code and applicable provisions of the Packers and Stockyards Act, the Perishable Agricultural Commodities Act and other federal and state statutes.
"Rather than enact legislation that, in effect, inserts the bureaucracy into the private contracting process," Boyle stated, "AMI supports educational efforts such as the one undertaken by USDA’s Agricultural Marketing Service (AMS) to educate farmers about contracts." AMS has updated its web site at http://www.ams.usda.gov/contracting/ to include a simple guide to agriculture contracts. Soon the site will provide specific information for poultry producers, livestock producers and fruit and vegetable producers.
AMI urges its Illinois members to write or phone their state legislators to voice their concern over this damaging state legislation. A copy of Boyle’s letter may be found by AMI members at: http://www.meatinstitute.org/Template.cfm?Section=AntitrustLegislation&NavMenuID=229&template=TaggedContentFile.cfm&NewsID=400AMI’s informational memorandum on contracts can also be found at: http://www.meatinstitute.org/Template.cfm?Section=Business&NavMenuID=107&Template=/TaggedContentFile.cfm&NewsID=364 Information regarding the Illinois legislation can be found at: http://www.legis.state.il.us/scripts/imstran.exe?LIBSINCWHB524

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