Can A Contract Be Cancelled Because Of Government Tariffs?

MLT Aikins contributes a monthly insight for the Western Producer's "Ask a Lawyer" column. The  Western Producer  is a leading agriculture industry publication targeted for Western Canadian farmers and ranchers. It covers the latest developments in agricultural news, production, technology, markets, finance, livestock and rural lifestyles.

Agricultural production contracts are agreements between producers (farmers or ranchers) and contractors (such as commodity processors) that specify the production of certain commodities. These contracts outline various terms, including production methods, quality standards, payment structures and delivery schedules. While they offer benefits like price stability and access to advanced technologies, they also come with drawbacks such as reduced autonomy for producers and potential financial risks, especially if the contract requires significant investments in specialized facilities or equipment.