It turns out there are lots of innovative alternative approaches to selling your farm goods. One such approach is to sell your production services rather than what you produce. For example, instead of growing tomatoes and selling the red orbs, you can enter into a contract for your labor before you even put seed in the ground. For example, a buyer may contract with you to trial a special product or seed variety. Such an arrangement can offer terrific stability! But, production service arrangements are not without there hiccups and careful attention should be paid to rights and obligations.
Check out our Farm Production Services Agreements Toolbox (43pgs.) for a comprehensive understanding of how they work. This resource includes a helpful checklist for what to include in your agreement and a model agreement, which includes helpful explanation on many of the contract provisions. If you’re wanting a better understanding of the production services contract model and want to listen while you work, check out Part 2 of our recorded webinar on sales, Sales 2: Contracts for Planning Ahead of Production (1hr. 9min.) for a good foundation.