Senate committee advances bill tightening seed-dealer payment rules after farmers testify of unpaid contracts

State Rep. Anna Sharp (House District 23) told the Senate Committee on Natural Resources and Wildfire on Feb. 26 that House Bill 4,065 A would put the legislature's 30-day payment intent for seed-production contracts into statute and strengthen enforcement tools for growers who are not paid on time.

Sharp, the bill sponsor, described the measure as a technical fix to statutes first changed in 2011. She said HB 4,065 A would require any seed dealer who receives a delinquency notice from the Oregon Department of Agriculture to provide proof of payment to ODA within 30 days, update the statutory interest provision from 1% to the current market rate plus 1%, and double existing fees for payment verification and issuing delinquency notices to cover the agency's processing costs.

Why it matters: farmers testified that delayed payments cause severe cash-flow problems because growers invest in each season well before harvest. Sharp said the bill is not a comprehensive industry solution but a targeted step to ensure that ODA can act more quickly when dealers do not pay growers as contracted.

Two farmers told the committee their…