Sunday, August 30, 2015
Farm Data in Custom Farming Contracts
Step 1: The custom farming contract needs to define the "farm data." For custom harvesters, farm data is the yield information tied to geospatial locations. It may also include machine data, such as fuel usage, if the farmer wants that information. For other custom farming arrangements, the "farm data" will be other data-sets, depending on the activity completed.
A good contract will also include a warranty from the custom operator that their machines have been properly calibrated and the farm data is accurate. Custom farming providers may be reluctant to provide such warranties, but doing so could be a competitive advantage.
Step 2: The contract should explain who owns the farm data. This should be simple in the custom farming arrangement, because in most instances, the farmer or landowner should own the data. However, custom harvesters may want to retain some data so that they can analyze their efficiency from field to field and year to year. This too should be spelled out.
Step 3: The contract should state how and when the farm data will be transferred to the owner. Will a third party cloud-based server be used? Will the custom operator hand over the data in a physical format? These questions can easily be answered.
Step 4: The contract should explain what obligations the custom harvester has to retain the farm data after transferring to the farmer. The custom harvester may want to retain the data for themselves--for future planning purposes--and that's OK, provided both parties know this and agree.
Some may see these provisions in a custom farming arrangement as overkill, but I think of them as forward looking. Some day these type of provisions will be common in farming contracts. Why not start now?
Posted by Todd Janzen