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In order to supply corn to MCP, a producer was required to
hold at least 5,000 units. Corn producers who wished to supply
corn to MCP were also required annually to execute a uniform
marketing agreement (UMA). The producer was obligated to deliver
to MCP the number of bushels provided in the UMA. Although both
petitioners were members of MCP, the record contains only UMAs
executed by Mr. Fultz.
b. UMAs Between MCP and Mr. Fultz
Mr. Fultz executed a UMA dated July 29, 1995, for the year
1995 and also executed a UMA for 1994, but that agreement is not
a part of the record. Collectively, the units and the UMAs
defined the scope of Mr. Fultz’s obligation to MCP.
Pursuant to the UMAs between Mr. Fultz and MCP, Mr. Fultz
was obligated to deliver to MCP a certain amount of corn during
each processing year.4 The UMAs outlined the terms with respect
to production, processing, and marketing of the corn. The UMAs
Mr. Fultz executed in 1994 and 1995 obligated MCP to process the
grain each year in a manner it deemed to be in the best interests
of the cooperative and its members and to market the processed
corn products at the best price that could be obtained on the
open market. Mr. Fultz was obligated to acquire and deliver the
corn to MCP. In the UMAs, Mr. Fultz appointed MCP as his agent
4MCP’s processing year started on the first day of October
of each year and ended on the last day of September of the
following year.
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