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2016
CONTRACT FOR HYBRID SEED CORN
BETWEEN
SECTION A
HORIZON SEEDS CANADA INC.
729 Mid/N Wals. Townline Road
R.R.#1
Courtland, Ontario
N0J 1E0
AND GROWER:
Address: ________________________________________
H.S.T.:803197748
Postal Code:
Telephone:
E-mail:
H.S.T.:
Crop Site:
Lot
Conc.
Township: ________________________________
County: __________________________________
Measured Gross Acres _____________
Measured Female Acres ____________
Hybrid:
Norm:
Hereinafter called the “Company”
Hereinafter called the "Grower"
SECTION B
The Grower and the Company agree to grow approximately _______________________ Gross Acres of seed
corn according to the terms and conditions contained in Section C of this contract.
Section A indicating the crop site, hybrid, norm and actual measured acreage will be completed and copies
forwarded by the Company to the Grower, and the Seed Corn Growers of Ontario on or before June 30th,
2016.
The Grower understands and agrees to the following selected Settlement Methods.
A. Fixed 50% price method:
Payment Date Dec. 1st 2016
or
Payment Date Jan. 1st 2017
B. Selection Date Method
SIGNED, SEALED AND DELIVERED
in the presence of
)
)
)
Date:
Date:
)
)
)
)
)
)
Date:
Grower(s)
Per:
HORIZON SEEDS CANADA INC.
Per:
SECTION C
1.
INTERPRETATION SECTION:
A.
Local Board: The Seed Corn Growers of Ontario as defined under the regulations of the Farm Products
Marketing Act R.R.O., 1990, as related to Seed Corn.
B.
Grower: Person(s) or corporation engaged in the contract growing of hybrid Seed Corn.
C.
Company: Horizon Seeds Canada Inc., a corporation licensed with the Farm Products Marketing
Commission, which contracts with a Grower through the Local Board, to grow hybrid Seed Corn for the
purpose of resale.
D.
Production Insurance: Crop insurance provided by Agricorp.
E.
Seed Corn: All hybrid corn produced in the province of Ontario for seed purposes, excluding sweet corn
or popcorn. The corn shall be ear corn (except in cases, as requested by the Company, where it shall be
shelled corn pending the approval of the Company, the Grower, the Seed Corn Growers of Ontario, and
Agricorp) suitable for conditioning as Canada Certified No. 1, defined by the Seeds Act (Canada).
F.
Gross Acres: Both Male Acres and Female Acres.
G.
Female Acres: The area or acres actually planted to female corn.
H.
Male Acres: The area or acres designated to male corn and required headlands, excluding interplant
acres
I.
Norm: The average expected Yield used for any given hybrid, established according to a formula
determined by Agricorp. Agricorp will provide the list of established norms.
J.
Parent Seed: The Seed Corn supplied to the Grower by the Company for the purpose of planting.
K.
Scalped Bushels: The weight of the harvested crop, adjusted to 15.5% moisture, according to the
Canadian Grain Commission Table, weighed after shelling and scalping.
L.
Factor: The most current five year Olympic average (2010-2014) of the top 7.5% of actual Yield for
commercial corn, using Agricorp’s Production Insurance and Market Revenue data for Norfolk County.
The Factor for 2016 is 208 bushels per acre.
M.
Yield: The (actual) amount of scalped bushels, approved for seed, per Female Acre.
N.
Bushel: A unit equivalent (actual) to 56 pounds of shelled corn.
2016 Hybrid Seed Corn Contract – Horizon Seeds Canada Inc.
Page 2 of 8
O.
Actual Yield per acre/Hybrid Norm X Zone Factor: Equals the Calculated Bushels per acre.
Examples: Factor = 208 Norm = 50
(a)
(b)
(c)
Yield = 50
Yield = 60
Yield = 40
50/50 X 208 = 208 Calculated Bushels
60/50 X 208 = 249.6 Calculated Bushels
40/50 X 208 = 166.4 Calculated Bushels
PLEASE NOTE: Yields below the Production Insurance coverage level are subject to Production
Insurance guidelines, if applicable.
P.
Base Price:
(a)
Fixed Price Method: the amount per bushel of calculated Yield, shall be the five year
Olympic average weighted price as supplied by the Grain Farmers of Ontario. The average
weighted price for 2016 is $5.38 / bushel.
b)
Selection Date Method: the amount per bushel of calculated Yield, shall be the high of
the daily close Chatham Elevators Board price paid to commercial corn growers, quoted
by Farm Market News. In the case of the Selection Date Method, the Base Price will be
the price applicable to the current crop year.
Interpretation:
- New Crop Price applicable to the current crop year;
- #2 (Two) yellow corn;
- 15.5.% moisture;
- high Board prices quoted by Farm Market News collected from 6 (six) Chatham area
elevators;
- we expect high as quoted on Farm Market News Commodity Price Summary to be used
daily.
- In the event that the Chatham area elevators are closed or not quoting a board price, no
price will be offered for those days.
In no case shall special quality, on-farm pick-up, or differed payment premiums or
discounts apply.
Q.
Settlement Methods:
(a)
Fixed Price Method: the Base Price under this method shall be paid on Dec. 1, 2016 or
Jan. 1, 2017. It is mandatory that 50% of this contract is paid on one of the dates
selected.
(b)
Selection Date - the Base Price(s) shall be determined by selecting a date(s) (the “Selection
Date”) between May 1st or the date of contract signing through to April 30th following
the crop year. The Grower will have up to two (2) opportunities to sell at a minimum of
25% per sale.
R. Settlement Price: The Base Price plus the Premium.
2016 Hybrid Seed Corn Contract – Horizon Seeds Canada Inc.
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a. Premium 1: The additional dollar amount per Calculated Bushel paid for the production of
hybrid Seed Corn. The premium for this contract shall be $0.75 per calculated bushel and is to
be added to the Base Price per Bushel. Failure to provide and maintain 210 m of isolation from
commercial corn or 420 m from any other corn or crops in the maize family will result in the
grower receiving no Premium, at the company’s discretion.
or
Premium 2: The additional dollar amount per Calculated bushel paid for the production of
Certified Organic Hybrid Seed Corn. The premium for this contract shall be $3.25 per calculated
bushel and is to be added to the Base Price per bushel. Failure to provide an Organic Certificate
of Conformity by a third party and maintain 210 m isolation from commercial corn or 410 m
from any other corn or crops in the maize family will result in the grower receiving No
premium, at the company’s discretion.
2.
FORMULA FOR PAYMENT:
A.
Female: For each bushel of corn produced, or part thereof, above or below the Norm, the Grower will
be compensated for services by receiving the Base Price per Bushel, plus the Premium, times the
calculated bushels. A 25% ceiling above the Norm shall apply to all varieties regardless of the number
of years the variety has been produced. Where a crop exceeds 25% above Norm, the additional bushels
above the 25% shall be compensated for at the Settlement Price. If the weighted average Yield of a
variety in the current crop year does not exceed 105% of the Norm based on harvested acreage, then the
ceiling of 125% does not apply for that variety.
B.
Male: The Grower is to receive the same calculated bushels per acre, and the same Base Price per
Bushel, plus the Premium. If the Grower does not take Production Insurance, then the Company will
only pay the Male equivalent for what is harvested on the percent of Norm of Female.
3.
THE GROWER AGREES WITH HORIZON SEEDS:
A.
When pricing, Grower must verbally notify the Company by no later than 10:00 a.m. local time
following the date selected and confirm it in writing.
B.
At the Grower’s expense, and in accordance with the Company’s directions, shall prepare the land for
planting, plant the seed supplied by the Company, cultivate, and detassel the corn in a proper
agricultural manner. The Grower will assume the cost of fertilizer, planting insecticides, herbicides,
machinery and labour. If during the growing season spraying is required to control insects and/or foliar
diseases the Grower and the Company shall share the cost 50-50 for materials and labour. Spraying
applications will be at the company’s sole discretions. The Grower agrees that the Company will
arrange to complete the harvesting and trucking of 100% of the female seed acres and that the cost of
this harvesting and trucking shall be paid by the Company.
C.
The Grower is responsible for supplying all labor and management necessary to detassel the crop under
the direction of the Company, in consideration of 4B in the contract, following. The conditions and
compensation for this activity shall be agreed to between the Grower and the Company at the time of
contract signing, prior to planting.
D.
The Parent Seeds furnished by the Company are, and at all times shall remain, the property of the
Company. The Grower will plant, return and otherwise handle the Parent Seeds as specified by the
Company. The plants produced from the Parent Seeds furnished by the Company, and the corn
2016 Hybrid Seed Corn Contract – Horizon Seeds Canada Inc.
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produced on such plantings shall be at all times the property of the Company, and that the Grower shall
have no right or title thereof. The Grower will not use for seed, sell for Seed Corn, or permit any other
person to use for seed, or sell for seed any of the crop produced from the Parent Seeds supplied by the
Company. The Grower represents to the Company that the Grower is lawfully entitled to grow Seed
Corn for the Company on the crop site and has not executed any documents or taken any steps, which
would impair the Company's rights under this contract.
E.
The Company's personnel, and/or agents, equipment and vehicles, on behalf of the Company, shall have
the right to reasonable access at all times across the Grower's property, to gain access at any time to the
corn crop area, and shall further have the right to survey the work of the Grower and advise the Grower
as to procedures to employ as recommended by the Company. (Including, but not limited to, planting,
spraying, cultivating and harvesting).
F.
If the Grower is unable or unwilling and fails to care for the corn crop in a proper manner as directed by
the Company, the Company shall, upon first notifying the Grower in writing giving 24 hours in which to
rectify the situation (except for detasselling where immediate action must be taken), have the right to
take sole custody and control of the corn crop. Any costs incurred by the Company in enforcing such
rights shall be deducted from compensation due the Grower by the Company.
G.
The Grower shall dispose of all corn derived from the male parent corn plant, as directed by the
Company.
H.
Prior to planting, the Grower shall provide isolation and maintain it throughout the growing season, as
directed by the Company.
I
The Grower shall verify and agree on Seed Corn field acreage with the Company to insure that there will
be no acreage adjustments to the measured acreage figures after June 30th.
J.
The Grower consents to the Company disclosing personal information contained in Section A and B and
actual Yield results at time of harvest, as needed, to the Seed Corn Growers of Ontario, AGRICORP and
third parties that may be contracted by the Company to carry out the terms and duties of this contract.
4.
HORIZON SEEDS AGREES WITH THE GROWER:
A.
The Company, at its own expense, shall supply the seed to plant the Seed Corn crop, C.S.G.A.
inspection fees. If during the growing season spraying is required to control foliar diseases and/or
insects, the Company will share costs 50/50 for materials and labour. The Company shall inform the
Grower of the time of harvest and transportation of the crop and shall examine and moisture test each
load of corn received by the Company. The Company will arrange to have the harvesting and trucking
of 100% of the female seed corn acres completed at the Company’s expense.
B.
The Company shall agree with the Grower on the conditions and compensation required to detassel the
Seed Corn crop at the time of contract signing, prior to planting.
C.
The Company shall receive from the Grower on or before November 15th of the current crop year, as
directed by Horizon Seeds, all seed corn which is derived from the female plant.
D.
That if on or before November 30th of the current crop year, the Company objects to the suitability of
the crop for Seed Corn, the Company shall notify the Grower in writing, by Registered Mail, with
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copies to the Local Board and Agricorp, if applicable. The objection should indicate in detail the
reasons for that said objection. In the event of disagreement of the objection between the Grower and
the Company, the Company shall immediately initiate the arbitration procedures as set forth in this
contract Section 5(I). If the Company does not initiate the arbitration on or before November 30th
current to this contract, the Company has waived its objection to the suitability of the crop for Seed
Corn.
E.
If the Company is unable to receive the Seed Corn, or any part of, on or before November 5th of the
current crop year, the Company shall be responsible for compensation for the Grower's services related
to the crop as seed corn with the exception of clause 5(E).
F.
The Grower shall have a maximum of two (2) dates to select a base price. Any Grower who has not
selected one, or any of the two (2) dates for 100% settlement by April 30th will accept the April 30th
Base Price for the balance (minimum sale at any one time must by 25% of the crop).
Payment for the percentage portion elected by the Grower shall occur within 10 business days after the
selected date or no later than May 15th (less the Growers' share of the Crop Insurance premium). If the
cheque is not picked up by 5:00 p.m. 10 business days following, then the cheque will then be mailed,
unless otherwise advised by the Grower. Payment, if date(s) are selected between May 1st and
November 14th, is due on or before December 1st. This percentage portion shall include both Female
and Male bushels. The Grower may notify the Company in writing if it wishes payment to be made in
the year following the Selection Date, providing the Selection Date is in the current crop year. If the
Grower does so, the payment will be made on the date specified by Grower, but not later than May 15th,
following the crop year.
G.
The Company agrees to assure that its personnel, and/or agents, are covered by Workers' Compensation
Insurance and that all necessary Workplace Safety Insurance Board Clearance Certificates are in place.
The Company agrees to provide the Grower with the proof of same where requested by the Grower.
H.
Subject to Section 3 (J), the Company will protect the personal information of the Grower and will only
disclose information contained in this contract within the Company and relevant information contained
in this contract to third parties named in the contract or those parties under contract requiring
information to carry out the duties outlined within the contract.
I.
Horizon Seeds to pay grower $50.00 per planted acre per application (1 (one) application to be a
minimum of 1 (one) inch of water), at the company’s sole discretion. Payment to be made in
conjunction with initial crop payment.
5.
IT IS FURTHER AGREED BETWEEN THE GROWER AND HORIZON SEEDS:
A.
The Company shall collect the premiums, from the Grower who purchases Production Insurance, as
directed by Seed Corn Growers of Ontario, and forward the premiums to Agricorp by the specified due
date. The Company will deduct the Grower’s premiums from the Grower's first cheque. The Company
also agrees to supply all necessary production statistics as required to Seed Corn Growers of Ontario and
coding information directly to Agricorp. Seed Corn Growers of Ontario has agreed to administer the
Production Insurance Program on behalf of the Growers.
B.
That The Company shall deduct from compensation due to the Grower, the amount as instructed by the
Local Board per gross acre planted, for Marketing Board fees to be forwarded to the Local Board as full
payment of the Grower’s obligation to the Local Board pursuant to “The Ontario Seed Corn Growers’
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Marketing Plan.” The Local Board shall advise the Company prior to contract signing as to the amount
to be deducted. 50% of the fees are to be paid by January 15, 2017, with the remainder due on March
15, 2017.
C.
If the Company deems that a field will not be suitable for Seed Corn, it reserves the right to reject all or
any part of the seed field up to 21 days after planting is completed. The Grower agrees not to reseed the
rejected field or any part of the field to any variation of corn or crop in the maize family where another
seed field is closer than the Company's isolation requirements.
D.
The Company reserves the right to reject (with the same restrictions as in Section 5(C)) all or any part of
the acreage to be grown which is not planted on or before May 25th of the current crop year, unless
agreed to in writing by the Grower and the Company.
E.
In the event of destruction or partial destruction of the Company's conditioning facilities, caused by fire,
acts of God, strikes, or other events beyond the Company's control, and the Company is unable to
receive the Seed Corn crop being produced for it, the Company shall first make every attempt to secure
alternate facilities, and if unsuccessful shall notify the Grower, in writing requesting termination or
partial termination of this contract. In such event, the agreement shall be terminated concerning any
untransported Seed Corn subject to the following terms:
1.
That the Seed Corn Growers of Ontario be notified by the Company;
2.
In the case of all varieties, the Grower shall dispose of the corn, under the direction of the
Company as commercial corn and all proceeds are to be used to compensate the Grower; and
3.
Adjustments on the Male corn will be made in accordance to this contract Section 2(B).
F.
In the event the crop is partially or totally destroyed by acts of the Grower (whether negligent or
otherwise), this contract may be terminated by the Company by notice in writing. The Grower may not
use any salvage from that crop as Seed Corn, nor sell the crop as Seed Corn, and will supply the
Company, on request, copies of disposal document.
G.
In the event that only part of the crop is approved for Seed Corn when the corn is transported to the
Company, the Company shall notify the Grower, on or before November 30th, and the Company shall
have the right to unload and store that corn. If the Grower, the Company and a representative of the
Local Board agree that the corn, after being sorted, is unsuitable for conditioning, the Grower and the
Company may then make an agreement in writing on the amount of crop or portion thereof to be
conditioned further to meet Canada Certified #1 standards for Seed Corn. Settlement shall be made on
the percentage of corn suitable for seed relative to actual scalped bushels. The shelled corn not meeting
certification standards shall be sold by the Company priced on No. 2 CE corn, and the proceeds of the
sale shall be paid to the Grower as full settlement of such portion.
H.
In the event that the Grower and the Company are unable to agree as to whether a crop is suitable as
Seed Corn prior to November 30th of the current year, the parties then shall notify the Local Board in
writing of the disagreement. A representative shall be appointed by the local Board to assist in the
disagreement but upon failure to do so, arbitration procedures shall be followed as laid out in Section
5(I) of this contract.
I.
In the event of disagreement between the Grower and the Company as to the interpretation of, or the
conduct of the parties under this contract, it is agreed that such dispute shall be settled pursuant to the
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Arbitration Act of Ontario by a Board of three arbitrators. This is to be accomplished in the following
manner:
1.
2.
3.
4.
Any party may notify the other party in writing of the matter of dispute and name his
arbitrator. The other party shall name his arbitrator within 7 days;
The two arbitrators will select a third independent arbitrator;
A decision of the arbitrators shall be final and binding; and
All expenses of the arbitration shall be shared equally between the two parties.
If one of the parties in the dispute neglect or refuse to appoint an arbitrator within the
time frame set out above then the sole arbitrator shall proceed alone and his award shall
be final and binding.
K.
It is agreed between the parties that the contract in its entirety be to the benefit of and binding upon the
parties, and their respective heirs, executors, administrators and assigns. Gender and number or words
and phrases shall be read as appropriate to the parties.
6.
THE PROVISIONS OF THIS AGREEMENT SHALL BE SUBJECT TO THE FOLLOWING:
A.
The Farm Products Marketing Act, R.R.O., 1990.
B.
The rules and regulations of the Canadian Seed Growers' Association (CSGA), relating to the production
of hybrid Seed Corn.
C.
The Seed Act, Revised Statutes of Canada and all regulations related to Seed Corn.
2016 CONTRACT FOR HYBRID SEED CORN as agreed to by HORIZON SEEDS CANADA INC.
and the SEED CORN GROWERS OF ONTARIO on ______________________________.
HORIZON SEEDS CANADA INC.
SEED CORN GROWERS OF ONTARIO
________________________________
Angela Van Laecke
________________________________
Rick Van Laecke
_____________________________________
Ron Meulemeester(Chair)
_____________________________________
Scott McGeachy
_____________________________________
Tim Kudroch
2016 Hybrid Seed Corn Contract – Horizon Seeds Canada Inc.
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