For Release: May 13, 2008

For More Information :
Jill Krueger, jkrueger@flaginc.org or 651-223-5400
Ed Maltby, ednodpa@comcast.net or 413-772-0444

New Guides to Help Farmers Understand and Negotiate Organic Dairy Contracts

ST. PAUL , MINN. — The organic milk market is competitive, and organic dairy producers need information to understand their options when selling organic milk. Farmers’ Legal Action Group, Inc. (FLAG) announces two new articles to help farmers negotiate organic dairy contracts. The articles contain important legal information for dairy farmers interested in selling organic milk to a processor, as well as for those who are already doing so.

The first article is called When Your Processor Requires More than Organic Certification: Additional Requirements in Organic Milk Contracts. It reviews contracts for the sale of organic milk that were used in 2007. All of these contracts required that farmers have organic certification. But all of the contracts also included farm practice requirements that went beyond those required for organic certification. For example, requirements related to access to pasture are often spelled out in greater detail than is currently included in National Organic Program regulations. Additional requirements are generally lawful. Farmers should be sure that they understand how to comply with the additional requirements, and how they will show that they have complied.

The second article is called Hushed Up: Confidentiality Clauses in Organic Milk Contracts. Some contracts for the sale of organic milk require farmers to agree not to disclose the terms of the contract with any other party. These contract clauses can discourage farmers from seeking legal advice, or from discussing farming or financial concerns with other farmers or financial advisors.

“Farmers should read and understand their contracts before they sign them. That is the best time for them to try to negotiate the terms of the contract. Once they have signed a contract with a processor, they should keep a copy for their records,” notes FLAG attorney Jill Krueger.

Ed Maltby , Executive Director of the National Organic Dairy Producers Alliance (NODPA) stated, “We believe that these articles will help organic dairy producers to make informed decisions for their own farming operations, as they strive to continue to meet consumer expectations for organic milk.”

Farmers may request a copy of one or both articles by calling FLAG’s office. Minnesota callers should dial FLAG’s office at 1-877-860-4349. For out-of-state callers, the number is 651-223-5400. A small fee is charged for printing and mailing costs for non-farmers. The articles can be downloaded at no charge from FLAG’s website at: www.flaginc.org. They can also be downloaded from the NODPA websites at: www.organicmilk.org or www.nodpa.com.