As a farmer, you must rely on your own judgment and ability to decide when, how deep, and where to plant your crops. Unfortunately the reliance doesn’t stop there. You must also rely on your banker, your fertilizer representative and your seed distributor, among others for other components of your business. In relying on your seed distributor, you must put your crops success in the hands of someone who knows the other factors of your operation in order to make sure the correct seed selection is made.
When it comes to seed selection there are many. In the world of corn, there are over 2000 varieties to plant. Just because a seed has been qualified by the US Department of Agriculture, Seed Regulatory and Testing branch based in North Carolina, doesn’t mean the seed you select is either proper for your application or viable.
Most states have consumer protection laws that require that a seed be fit for a particular purpose. Generally a consumer of seeds, a farmer, would expect that a seed that is planted properly, under normal conditions, will germinate and grow as was represented by the seed distributor. Unfortunately that isn’t always the case.
In some cases there are genetic defects inherent in certain seed stocks that prevent germination. The seeds may be too old, or exposed to too much heat, or radiation, regardless, the seed may not germinate due to an inherent defect in the seed itself. Therein would lay the potential for a cause of action against the original seller of the seed, and possibly the seed distributor who directed you to this defective seed.
In other cases, the seed may be just fine if it is planted under different circumstances, in different soil conditions or different moisture levels. However, in your application, the seed is just not a proper fit. In that case, the liability could be against your seed representative and dealer for misguiding you. Once again, you are relying on others for your eventual success.
Each case requires a different analysis because each set of facts is different, the laws of each state are different, and the application of those laws to the facts is different.
Where defective seed results in production losses and there has been the necessary reliance on the seed distributor’s skill or judgment, the seed distributor will be liable for the resulting loss. The measure of this loss is the difference between the anticipated crop value if the seed had not been defective and the reduced crop value resulting from the defective seed.
These type cases involve many expert witnesses that opine on everything from the reasonableness of the seed selection to the conditions in which they were planted. Also expert testimony regarding what other farmers in the area who planted proper, or non-defective seeds fared economically. By way of comparison, a reasonable assessment of the anticipated crop can be calculated.
Written by:
Brian Berryman
Watts Guerra LLP
4 Dominion Drive, Bldg. 3, Suite 100
San Antonio, Texas 78257
Phone (210) 447-0500
© Watts Guerra LLP 2015
