Past-Due Crop Payment Demand Letter

What a good one includes

• The specific contract numbers, delivery dates, and scale ticket numbers associated with each crop shipment.
• An itemized breakdown of the outstanding balance, including bushels or tonnage delivered, agreed price per unit, and any calculated moisture or quality adjustments.
• A clear, reasonable, and non-negotiable deadline for payment, typically ten to fourteen business days from the date of receipt.
• Reference to applicable state agricultural lien laws or federal regulations, like the Perishable Agricultural Commodities Act if applicable, to demonstrate legal leverage.
• The exact acceptable methods of payment, such as a wire transfer or cashier's check, along with delivery instructions.
• A formal statement of intent outlining the specific legal or regulatory actions you will take if payment is not received by the deadline.

Common mistakes to avoid

• Failing to attach copies of supporting documents like scale tickets, grading sheets, and the original purchase contract.
• Using overly emotional or aggressive language that undermines your professionalism and could weaken your position in a future court proceeding.
• Allowing too much time to pass before sending the demand, which can cause you to miss strict statutory deadlines for filing agricultural producer liens.
• Accepting vague, verbal promises of partial payment instead of insisting on a written, signed repayment agreement with interest.

Frequently asked questions