Force Majeure Claims During COVID-19 Pandemic
You may have heard recently that a major ethanol producer has claimed the COVID-19 pandemic is a force majeure event, excusing its nonperformance under certain contracts to buy grain. Some ethanol producers are reported to have temporarily halted production of ethanol, citing excess ethanol in storage because demand for gasoline has fallen during the COVID-19 pandemic. That development has caused some concern among growers and sellers of grain. While we have not heard of grain buyers in Kansas asserting force majeure, we have received some questions from producers about force majeure. Here is a resource to answer a few common questions about force majeure for grain sellers.
The National Agricultural Law Center has additional FAQs about contracts during COVID-19 on his website here.