Read The Times Australia

Daily Bulletin

Changes to contract laws could give small farming businesses more control of data and innovation

  • Written by: Leanne Wiseman, Associate Professor, Griffith Law School, Griffith University

New laws that are designed to protect small businesses from falling victim to unfair contract terms may help tip the balance of power back in favour of smaller farmers, especially when it comes to innovations involving data.

In November 2016, Australia’s current regime of protection against unfair contract terms for consumers will be extended to cover unfair terms in standard pre-printed form contracts for small business. I am studying the impact of these changes on the multitude of standard form contracts that farmers deal with on a daily basis, particularly contracts associated with digital agriculture.

It won’t be too long before we see swarms of autonomous, collision-avoiding agri-bots, driverless tractors and drones in use on farms. These digital technologies bring undeniable opportunities for productivity gains to farmers.

However for each digital farming technology adopted, a standard form “Terms of Use” agreement is entered into by the farmers. This regulates the collection and aggregation of the farm data by the technology.

Farm data is being seen as one of the most valuable things that farmers harvest now because it can be used to predictive business models for all aspects of farming. Many of these “Terms of Use” agreements can be one-sided, as they give agribusinesses the ability to develop these models, while farmers lack this information.

Extending the law to cover unfair contract terms for small business

The new unfair contracts term legislation affords protection to small business- defined as those that employ fewer than 20 persons. While there are some notable exceptions, many primary producers operate businesses that would fall under this definition of a small business, this includes the dairy and horticultural industries.

The unfair terms in milk processing contracts being enforced against dairy farmers in Victoria are just one example of the impact that unfair contract terms can have on an industry. This is also now the subject of an Australian Competition and Consumer Commission review.

Under the most recent changes, a contract term may be declared void and unenforceable if it satisfies these three criteria:

  1. the contract is a standard form contract for the supply of goods and services (including financial services) or the sale or grant of an interest in land
  2. where the upfront price payable under the contract does not exceed A$300,000 for contracts shorter than 1 year (or A$1,000,000 for contracts longer than 12 months)
  3. the term is unfair.

In terms of the third requirement terms are defined as “unfair” where:

  • they could cause a significant imbalance in the parties’ rights and obligations
  • it is not reasonably necessary to protect the legitimate interest of the party relying up the term
  • detriment is suffered, either financial or otherwise.

In considering whether individual terms are unfair - how transparent they are and how they relate to the contract as a whole are looked at. Put simply, transparency means the terms are legible, in plain language, presented clearly and readily available to any party affected by the term or contract.

The standard form contracts the new laws apply to, are prepared by one party and presented to the other party who has little or no opportunity to negotiate the terms prior to entry. There are certain contracts between IT companies and farmers that could be considered unfair under the new legislation.

For example, agribusinesses are working hand in hand with IT companies to develop the new digital farming technologies, like business giant Monsanto’s acquisition of Climate Corp (who specialise in digital systems) in the United States. Farmers agree to data contracts from these companies as part of using their technologies.

Often these contracts the use an agreement where the click of an “I agree” icon signifies consent to the terms of a software licence. This could be considered not a completely thorough or transparent process for understanding the information in the contract.

How the changes may affect the digital farmer

The “terms of use” embedded in digital farming technologies are complex, generally non-negotiable and presented on a “take it or leave it” basis when the technology is adopted. Many of the terms in these data contracts (that relate to the ownership, privacy, security, and the sharing of farm data with third parties) are not exactly considered to be transparent in relation to these latest unfair terms reforms.

The small print in some instances is locked under layers of policies that can only be found on some agribusinesses websites. This then creates a power imbalance between some multinational agribusinesses and small farming businesses. This is because often farmers are not made aware of the terms upon which they are giving access to their farm data.

Farmers have long held concerns about the security and privacy of their data and whether they have a right of access to their data once it has been collected and aggregated. A recent report revealed the majority of farmers saw value in sharing data with their peers but privacy was still one of the main concerns.

The latest extension of the law to cover small farming businesses contracts provides a golden opportunity for large agricultural data companies to review their contracts with farmers’ concerns in mind. Terms that appear excessive in terms of what is reasonable to protect their interests should be reviewed to ensure the privacy and security of farmers’ data is adequately protected.

Hopefully, these changes will go some way towards a more transparent, fair and equitable contracting environment where conversation and negotiation become part of the future of big agricultural data.

Authors: Leanne Wiseman, Associate Professor, Griffith Law School, Griffith University

Read more http://theconversation.com/changes-to-contract-laws-could-give-small-farming-businesses-more-control-of-data-and-innovation-69275

Business News

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...

When Should You Speak with Divorce Lawyers in Sydney?

Divorce involves more than completing an online application. It can affect parenting arrangements, p...

How to Choose a Reliable Hot Water System Installer on the Gold Coast

Choosing a reliable installer is just as important as choosing the right hot water system. A qualifi...

How Microtask Platforms Support Modern Digital Promotion

Digital promotion has become increasingly complex. Businesses communicate with customers through w...

Cosmetic Dentistry Options From a Brisbane-Based Dental Team

You cover your mouth when you laugh. You skip the group photo. Maybe you edit pictures to soften a...