If any grower or producer of any farm product within this state voluntarily executes and causes to be delivered to a dealer or processor of farm products, either as a clause in a sales contract or other instrument in writing, a notice of assignment of dues to a nonprofit agricultural commodity organization directly representing the specific product involved, by which the processor or dealer is directed to deduct a sum from the price to be paid for such product and to pay the same over to such association as dues for the grower or producer, the processor or dealer shall deduct from the price to be paid for any farm product being sold by any such grower or producer to any such processor or dealer, the amount authorized and pay it over to the organization as assignee.
General ProvisionsAssignment of Dues
Section § 58451
If a farmer in California signs an agreement allowing a dealer or processor to take out a portion of their sales payment for farm products and give it to a nonprofit representing their specific type of product, the dealer or processor must follow that instruction. They must deduct the agreed amount from the farmer’s payment and send it to the nonprofit as the farmer’s membership dues.
farmer dues assignment farm product sales deduction nonprofit agricultural organization
Section § 58452
If a dealer or processor includes a clause in a contract trying to nullify the assignment of dues mentioned in the previous section, it's not legally valid. In simpler terms, you can't make a contract that overrides the assignment of dues.
No provision which is inserted in any contract that is prepared by a dealer or processor which makes an assignment of the dues described in Section 58451 ineffective is valid.
contract provision dealer contracts processor contracts
Section § 58453
This law says that the amount a grower or producer can allocate for dues when delivering products to a dealer or processor cannot be more than 2% of the product's total value.
An assignment of dues may not exceed 2 percent of the total value of the product which is delivered by the grower or producer to the dealer or processor.
assignment of dues grower dues limit product delivery
Section § 58454
This law says that a dealer or processor doesn't have to pay dues to a grower or producer until they actually have enough money available to make that payment. If the product is grown annually, they can wait until the end of the year to pay the dues.
Payment need not be made under any assignment of dues pursuant to Section 58451 until the dealer or processor has available and under his control funds owing to the grower or producer that are sufficient in amount for making the payment of the dues involved. In the case of an annual product, such payment need not be made until the end of the product year.
payment obligation assignment of dues dealer funds
