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Under current law, there is no clear outlining of the legal obligations and liabilities associated with acreage contracts. HB 338 would add a section to the Agriculture Code to provide such a clarification.
An acreage contract would exist where a producer agrees to sell to a purchaser all of the agricultural product grown on a specified land area. Specifically, HB 338 would require the contract to clearly identify if it is an acreage or quantity contract; allow the purchaser to request a product estimate from the producer in the specified land area; and would allow the purchaser to file suit only in cases where inaccuracies are contained in a estimate requested within 30 days of the execution of the acreage contract.